Disney (NYSE: DIS) has eliminated 1,000 positions in its first major workforce reduction under new CEO Josh D'Amaro, a strategic move to safeguard the company's ambitious $7 billion stock buyback program. The layoffs, announced in early April 2026, mark a significant shift in corporate strategy following D'Amaro's transition from longtime CEO Bob Iger, placing investor focus squarely on the stock's near-term performance amid the restructuring.

Why Is the Company Firing 1,000 Employees?

The job cuts are not random, but are targeted trimmings focused on the marketing and corporate departments. Asad Ayaz, Disney’s new Chief Marketing Officer, said that the company has formed a ‘Project Imagine’ department. The initiative aims to consolidate Disney’s diverse marketing teams, which encompass film, television, and streaming, into a single, streamlined unit. Before the announcement was made, Disney stock surged 3.55% on Wednesday, reaching $99.18.

Letting go of 1,000 employees is less than 1% of the company’s 231,000 employees. However, the development signals that the company’s idea of spending at any cost to gain subscriptions has ended. They will now move into a tactical direction in a realignment by the new CEO. This can prove beneficial to Disney stock as the CEO is freeing up capital.

How Will This Impact Disney Stock?

CEO D’Amaro comes from the ‘experiences’ segment of Disney, where he handled theme parks. He plans to deploy the capital on what actually works for the company, which is Disney’s cash cow. 72% of the company’s total operating income comes from theme parks and cruises. The CEO announced that he plans to invest $60 billion over the next decade, expanding theme parks and realigning the experiences. The development could have a positive impact on Disney stock over the coming years.

Layoffs with an agenda of improvement are seen as a positive signal for Wall Street. Improving the operations margin allows companies to grow and not remain cash-strapped and under pressure. Most importantly, Disney will buy back its stock by spending $7 billion. Every dollar saved on salary in the marketing department is money that can be used to pump the stock price through repurchases.