Disney warns of workforce cuts and restructuring via automation

Disney is preparing for significant workforce reductions as part of a broader restructuring effort. Horacio Gutierrez, Disney’s Chief Legal and Global Affairs Officer, issued a memo to his department warning that the organization will become “a much smaller organization” and that some employees “will personally be affected by decisions we make in this process.”

The memo indicates that the company intends to automate certain workflows by leveraging new technologies, move toward self-service models, and utilize alternative legal providers or outsourcing. While the term “AI” was not explicitly used in the memo, the move coincides with Disney’s appointment of Karandeep Anand, the former head of Character.AI, as its first Chief Technology Officer.

These developments follow several rounds of job cuts conducted by the company earlier in 2026. CEO Josh D’Amaro is reportedly leading efforts to simplify Disney’s structure, reduce costs, and redirect resources toward high-growth areas.