Disney is making headlines again this week, and unfortunately not for the happiest of reasons. The company’s Chief Legal and Global Affairs Officer, Horacio Gutierrez, sent a sobering internal memo to employees on September 18, 2026, warning that significant layoffs are on the horizon for the Legal and Global Affairs department.
What the Memo Said
The language in Gutierrez’s memo was direct and serious. ,He told the department which employs fewer than 1,000 people worldwide, that the company is undergoing a transformation process and that there will be “hard choices” ahead.
Perhaps most striking was this line: “LGA will be a much smaller organization than it is today, and some of you will personally be affected by decisions we make in this process.”
The memo referenced plans to automate certain workflows by “leveraging the latest technologies” and also mentioned outsourcing and alternative legal providers as part of the restructuring strategy. While the memo does not explicitly name artificial intelligence, the implications were clear to industry observers.
The Bigger Picture
This memo does not exist in isolation. Disney has already gone through several rounds of significant layoffs in 2026. In April, approximately 1,000 employees were let go, including around 8% of Marvel Entertainment. In July, additional cuts hit Pixar, ESPN, and other divisions. In August, Disney began offering voluntary early retirement packages to director-level executives and above.
Industry insider Matthew Belloni of Puck News also reported that more limited cuts were planned for the end of September, this time targeting HR, product and tech, and other operations functions.
Meanwhile, on the very same day the Gutierrez memo circulated, Disney announced the hiring of Karandeep Anand as the company’s first ever Chief Technology Officer. Anand previously ran Character.AI, one of the leading artificial intelligence platforms. The timing of that announcement alongside the layoff warning was not lost on observers inside or outside the company.
Disney has been open about its broader strategy of producing more content with fewer employees by leaning into AI and technology. CEO Josh D’Amaro has been overseeing this transformation since taking the top job, and the company’s moves in recent months paint a clear picture of where things are heading.
For employees in the Legal and Global Affairs department specifically, the coming weeks are going to be uncertain and stressful. Our thoughts are with everyone at the company who is navigating this difficult period.
We will continue to follow this story as more details emerge. Stay with The Main Street Mouse for the latest updates.
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