For decades, The Walt Disney Company built one of the most powerful brands and culture on the planet around a simple but deeply emotional idea: Making millions of people feel that magic could exist. Disney never sold only movies, characters, or theme parks; it also sold nostalgia, family memories, and a sense of belonging that connected generations across the world.
However, in recent years, that identity became increasingly caught in a much more complex and polarized conversation about inclusion, diversity, representation, and cultural identity.
Now, under the leadership of Josh D’Amaro, the company appears to be entering a new chapter aimed at redefining what Disney represents in the 21st century. His arrival as CEO was not only accompanied by layoffs, internal restructuring, and financial adjustments. It also came with a noticeable shift in tone that many interpret as an attempt to restore a more traditional and emotionally familiar image for the company.
Recent decisions have opened a global debate. For some consumers, Disney is finally returning to the essence that made it a cultural symbol for decades. For others, there is growing concern that this shift could signal a move away from the diversity and inclusion policies the company strongly embraced in recent years.
The discussion goes far beyond entertainment. The real question is whether Disney can reclaim a more classic narrative without that being perceived as a rejection of historically marginalized communities, including the LGBTQ+ community, one that, in today’s society, has undoubtedly gained significant visibility and influence in terms of inclusion.
The executive is now trying to redefine Disney
Before becoming CEO, Josh D’Amaro had spent nearly 28 years inside Disney. Unlike many corporate leaders who come from Wall Street or major tech companies, D’Amaro built almost his entire career within the company, especially in divisions related to theme parks, resorts, and international experiences.
That background is essential to understanding why he ultimately became the person chosen to lead Disney during one of the company’s most delicate moments. Inside Disney, many see him as an executive deeply connected to the emotional core of the brand.
It was precisely through the parks division that he built a reputation as an efficient leader closely tied to the traditional Disney experience that millions of families associate with the company.
And it is no coincidence that the new CEO emerged from that division. According to official financial documents filed by The Walt Disney Company with the U.S. Securities and Exchange Commission (SEC), Disney Experiences became the most profitable segment of the company. During fiscal year 2025 alone, it generated approximately US$36 billion in revenue and nearly US$10 billion in operating income.
While Hollywood faces a profound transformation driven by streaming and digital consumption habits, Disney’s parks remain the company’s true financial engine. That is where Disney transforms emotions, nostalgia, and storytelling into real-life experiences capable of generating billions in profits.
The numbers that explain why Disney felt it needed a reset
Although Disney remains one of the largest entertainment companies in the world, there was a growing internal sense that the company was losing something even more important than money, the emotional connection with part of its audience.
According to official Disney financial filings submitted to SEC, the company reported approximately US$94.4 billion in total revenue during fiscal year 2025, compared to US$91.4 billion in 2024. On the surface, those figures appear positive. But Disney’s problem went far beyond financial growth.
The company’s global reputation began to weaken significantly. According to the international firm RepTrak, Disney went from ranking as the second most admired company in the world in 2020 to disappearing entirely from the global corporate reputation rankings by 2026. The decline also became evident in brand value. Data from Brand Finance estimated that Disney’s brand value dropped from approximately US$56.1 billion in 2020 to around US$44.8 billion in 2025, representing a decline close to 20%.
That deterioration coincided with years in which the company became deeply entangled in intense cultural and political debates related to inclusion, gender identity, and corporate activism. For some consumers, Disney began moving away from the family-centered neutrality that had historically defined the company.
For others, Disney was simply trying to adapt to increasingly diverse and modern societies. The problem for Disney was that it ended up polarizing part of its relationship with the public.
Signs of strain also began appearing in the theme parks. Although Disney Experiences remains the company’s strongest financial driver, attendance at U.S. parks declined by roughly 1% during 2025 while criticism over the growing cost of visiting Disney continued to rise.
For many families, a Disney vacation no longer feels financially accessible. And that represents a major issue for a company that historically built its power around the idea of being an aspirational yet emotionally accessible experience for millions of people.
The debate around gender-neutral language and traditional values
One of the most discussed aspects following D’Amaro’s arrival has been the perception that Disney is attempting to distance itself, at least partially, from some corporate policies tied to inclusive language and identity-related debates.
Over the past few years, several experiences inside Disney parks began replacing traditional greetings such as “ladies and gentlemen, boys and girls” with more neutral expressions such as “dreamers of all ages” or “friends.”
Although Disney has not officially announced a corporate policy against inclusive language, several internal changes have been interpreted as signals of a return to a more traditional narrative.
For some consumers, this simply represents a recovery of Disney’s classic essence and a way to rebuild experiences that feel less politically charged. However, other groups view these changes with concern because they believe they could send a message of distancing from diverse communities.
That raises one of the most difficult questions surrounding this new era: Can Disney restore traditional symbols without appearing to move backward on representation and inclusion? So far, the company has not announced measures targeting LGBTQ+ characters, inclusive content, or employees belonging to minority communities. Nor has Disney communicated discriminatory policies.
However, there appears to be a clear effort to reduce the perception that Disney operates as a politically activist company. And there is an important business explanation behind that strategy.
A company caught between two audiences
Over the past several years, many global corporations discovered that becoming heavily involved in cultural debates can generate support from certain groups while simultaneously creating backlash among others. Disney became particularly exposed to that polarization.
Part of the public and many families began feeling that the company was drifting away from the classic experience that historically defined the Disney brand. At the same time, another significant segment of consumers believes Disney should reflect increasingly diverse and inclusive societies.
That leaves Josh D’Amaro facing an extremely delicate challenge: Reconnecting emotionally with more traditional audiences without damaging the relationships Disney built with younger generations and diverse communities. The question, therefore, is no longer only cultural.
It is also commercial. Are families today looking for a Disney that feels more neutral and emotionally traditional? Or do younger generations expect a company that is more representative and open to evolving identities? That balancing act could become one of the defining tests of D’Amaro’s leadership.
Over the last decade, conversations around gender identity, race, sexuality, and representation have gained enormous visibility and influence in public life. Audiences increasingly expect major global brands to reflect the diversity of the societies they serve. For many younger consumers, especially, inclusion is no longer viewed as optional but as part of what defines a modern company.
This creates a difficult path for Disney moving forward. How can the company restore a more classic and nostalgic identity without alienating audiences who believe representation matters deeply?
So far, Disney has not announced policies against LGBTQ+ communities or inclusive storytelling. However, even symbolic changes involving language, messaging, or corporate tone can quickly become emotionally and politically charged in today’s environment. That means D’Amaro’s challenge may revolve as much around perception as policy itself.
If Disney leans too heavily into traditionalism, some audiences could interpret it as a retreat from inclusion. But if the company appears overly politically engaged, it risks further polarizing consumers who long for a more neutral and family-centered brand experience.
The real challenge for Disney may therefore not be choosing between tradition and diversity but finding a way to balance both without losing authenticity. In an era where cultural sensitivities are stronger than ever, Disney’s future could depend less on taking sides and more on making different audiences feel represented without turning the company itself into a battlefield of cultural division.
Layoffs and Disney’s internal rebuilding process
Disney’s new chapter also began with difficult decisions inside the company itself. Shortly after taking over leadership, D’Amaro announced approximately 1,000 layoffs, primarily in marketing and brand-building divisions. The move was presented as part of a broader restructuring effort designed to unify Disney’s narrative across movies, streaming, parks, sports, and experiences.
But the internal strain had existed long before his arrival. According to the company’s reports, between 2020 and 2023, Disney eliminated more than 35,000 jobs through pandemic-related cuts and later corporate restructuring efforts.
Those issues were compounded by labor tensions. In September 2025, the company agreed to pay approximately US$233 million to settle a class-action lawsuit involving employee wages in California.
All this left Disney facing an uncomfortable question internally: Can the company continue projecting happiness and magic when part of its workforce feels uncertainty and instability? Many believe D’Amaro understands that Disney’s rebuilding process must begin from within. After all, the emotional experience Disney sells depends heavily on the people who create the magic every day for visitors and audiences around the world.
Disney’s future between nostalgia and modernity
The challenge facing Josh D’Amaro may be one of the most complex any Disney leader has encountered in decades. He needs to maintain financial growth and strengthen divisions such as streaming and theme parks. He also must rebuild an emotional connection that for years made Disney something far greater than an entertainment company.
Disney appears to recognize that part of the public misses a version of the company that felt simpler, less confrontational, and more emotionally familiar. At the same time, another significant portion of audiences expects major brands to reflect increasingly diverse and inclusive societies.
Perhaps the real challenge is not choosing between tradition and diversity. Perhaps the real challenge is finding a way for both to coexist in an era where nearly every corporate decision becomes interpreted as a cultural or political statement.
Because if there is one thing that made Disney powerful across generations, it was precisely its ability to become a place where millions of people could feel part of the same story, even while seeing the world in very different ways.
So, if recovering Disney’s essence, according to Josh D’Amaro, also means bringing back more traditional values and forms of language, perhaps the company’s true success will depend on whether it can find a balance between tradition and diversity without becoming exclusive to either side.