Disney staffers seek clarity on potential job cuts amidst uncertainty

Several employees expressed frustration with the lack of transparency surrounding cost-cutting measures. One software engineer directly inquired, “Do we know when the cost cutting is targeted to happen?” Another veteran tech employee questioned whether it would be preferable for staff to receive information about benefit changes and layoffs directly from management rather than through media reports.

The uncertainty follows a Bloomberg report stating Disney is planning to lay off thousands of employees, with some managers reportedly asked to achieve 20% annual cost savings. Disney has not commented on the report.

Employees also inquired about the impact of potential cuts on the Media Platform Alliance (MPA), the motivation behind recent early retirement packages offered to senior executives – a program described by Disney’s creative chief, Dana Walden, as “extremely generous” – and the integration of 66 employees from Character.AI, an AI chatbot startup, for which Disney is paying $60 million. The company’s new tech chief, Karandeep Anand, previously served as CEO of Character.AI.

During the town hall, Disney streaming leaders provided limited specifics regarding potential cuts or timelines. Following the meeting, employees shared their discontent on Blind, an anonymous forum. One user described the leadership’s responses as “forced positivity,” while another criticized the perceived disregard for “actual changes and issues destroying morale.”

Morale within Disney has reportedly been impacted by the prospect of layoffs, with one high-level engineer describing the situation as “very demotivating.” Some employees have acknowledged an increased effort to appear busy, attending meetings they would typically forgo.

Disney has already implemented three rounds of layoffs within D’Amaro’s tenure and recently filed a WARN notice in California, indicating plans to terminate 159 park employees.