So here's what's happening at the House of Mouse: Walt Disney Company (DIS) has started cutting about 1,000 jobs. This isn't just trimming around the edges—it's a sweeping round of layoffs as the company restructures operations under CEO Josh D'Amaro.
Think of it as Disney trying to streamline how it runs its massive entertainment empire. The cuts are hitting across media divisions—studios, TV networks, sports, and experiences. The company says it's all about reallocating resources more efficiently. You know, the usual corporate speak for "we need to spend less money."
Marvel Gets Hit Hard
Now here's where it gets interesting: Marvel Studios is taking some of the deepest cuts. We're talking job losses in New York and Burbank across film and TV production, comics, franchise, finance, and legal teams.
But the real story is what's happening to the visual development team. This is the group that shapes how major productions look—you know, the visual style of Avengers, Guardians of the Galaxy, Daredevil, all that stuff. They're getting gutted. Nearly the entire team is being let go, leaving just a small core staff behind. The plan? Move to project-based hiring going forward.
This is particularly notable because, well, Marvel prints money for Disney. The company bought Marvel for $4 billion back in 2009, and since then, the franchise has generated massive global box office returns. We're talking multiple films each surpassing $1 billion. Avengers: Endgame made $2.79 billion. Avengers: Infinity War pulled in $2.05 billion. Spider-Man: No Way Home brought home $1.92 billion. Black Panther earned $1.34 billion. And several other Marvel films have also crossed that billion-dollar mark.
So when Disney cuts deep into the team that helps create the look of these billion-dollar movies, you know they're serious about cost-cutting.
The Contractor Shift
Here's how this is playing out: Disney is moving some of these affected artists to contract roles. Instead of being full-time employees, they'll work on a per-project basis. This follows a reduction in Marvel's production slate and broader cost-cutting efforts across the company.
Disney says this decision reflects ongoing efforts to manage resources better—not about employee performance. Which is corporate-speak for "it's not you, it's our budget."
This shift to contractors isn't unique to Disney. It's part of broader industry trends where entertainment companies are trying to be more flexible with their workforce. But when you're talking about the team that designs the look of your most valuable franchise, it's a pretty significant change.
What Analysts Are Saying
Guggenheim analyst Michael Morris thinks 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.
But there's growing pressure on the new CEO. Disney stock is down about 10% year to date in 2026 following a mixed performance under Bob Iger. So D'Amaro needs to show he can turn things around.
As for the stock today? Walt Disney shares were down 0.08% at $102.51 during premarket trading on Wednesday.
