Walt Disney Company (NYSE:DIS) has begun a sweeping round of layoffs affecting about 1,000 employees as it restructures operations under CEO Josh D'Amaro.

Company-Wide Cuts To Streamline Operations

Disney is eliminating roles across its media divisions, including studios, TV networks, sports, and experiences. The company said the layoffs are part of an effort to streamline operations and reallocate resources more efficiently across the business, Forbes reported on Tuesday.

Marvel Division Faces Deep Reductions

Marvel Studios is among the hardest-hit units, with job cuts spanning New York and Burbank across film and TV production, comics, franchise, finance, and legal teams.

The layoffs include nearly the entire visual development team, which shapes the look of major productions such as Avengers, Guardians of the Galaxy, and Daredevil, leaving only a small core staff to manage project-based hiring.

Disney's Marvel franchise has generated massive global box office returns, with multiple films each surpassing $1 billion.

Major titles such as Avengers: Endgame ($2.79 billion), Avengers: Infinity War ($2.05 billion), Spider-Man: No Way Home ($1.92 billion), and Black Panther ($1.34 billion) highlight the scale of earnings, while several other Marvel films have also crossed the billion-dollar mark, underscoring the franchise's consistent commercial strength, the Deadline reported on Tuesday.

Disney snapped up Marvel for $4 billion in 2009. 

Shift To Contractors Amid Broader Industry Cuts

Disney is moving some affected artists to contract roles on a per-project basis. The cuts follow a reduction in Marvel's production slate and broader cost-cutting efforts across the company. Disney said the decision reflects ongoing efforts to manage resources rather than employee performance better.

Guggenheim analyst Michael Morris said Disney can unlock upside under CEO Josh D'Amaro by better executing across its core businesses and leveraging franchises like Marvel and Star Wars.

Morris believes Disney can boost investor confidence by delivering a more consistent pipeline of high-quality content, improving transparency in its streaming and entertainment segments, and optimizing its parks and resorts division, where D'Amaro has deep experience.

He also highlights growing pressure on the new CEO, with Disney stock down ~10% year to date in 2026 following a mixed performance under Bob Iger.

DIS Price Action: Walt Disney shares were down 0.08% at $102.51 during premarket trading on Wednesday, according to Benzinga Pro data.

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