Disney employees are being warned that artificial intelligence and other technology-driven changes could lead to a significantly smaller workforce as the company seeks to reduce costs and restructure operations.

Chief Legal and Global Affairs Officer Horacio Gutierrez outlined the plans in a Sept. 18 memo, stating that his department would undergo a major restructuring as technology alters how its work is performed. Gutierrez said Disney is taking a “dispassionate look” at its legal, government relations and operations teams to make them more efficient and cost-effective. He made clear that the Legal and Global Affairs organization “will be a much smaller organization than it is today” and that some employees will be personally affected.

The company is examining ways to reduce work performed directly by staff, including automating workflows with newer technology, expanding self-service models, using outside legal providers, increasing shared services, and outsourcing. Some tasks currently handled by Disney employees could shift to outside companies or automated systems.

Disney is expanding its focus on artificial intelligence. It recently appointed Karandeep Anand as its first chief technology officer and is seeking a director of AI enablement and legal engineering to develop internal AI workflows and decide which functions to build in-house versus outsource. CEO Josh D’Amaro has discussed using AI and other technologies to improve efficiency, and Chief Financial Officer Hugh Johnston said during a May earnings call that the company continues to redirect resources toward areas expected to generate stronger returns for shareholders.

The comments follow Disney’s announcement of plans to eliminate about 1,000 jobs and multiple rounds of layoffs in recent years aimed at cutting expenses. The latest memo provides no specific headcount reductions or timetable but signals that automation, AI, and outsourcing will shape a leaner workforce, particularly in corporate functions such as legal work and operations.