Disney has announced that the majority of its Consumer Products division will be moved from the Experiences group into the Studios arm of Disney Entertainment, a reorganisation scheduled to take effect in October 2026.
Why the shift matters
The company’s memo — circulated by Thomas Mazloum, chairman of Disney Experiences, and Alan Bergman, chairman of Disney Entertainment Studios — framed the transfer as an effort to create closer ties between the teams that craft the company’s characters and stories and those that make, market and sell products based on them. The move comes as Disney prepares to report third‑quarter results and marks its second significant internal transfer to the entertainment side in six months.
“cohesion across the entire Disney ecosystem and extending the relevance of our franchises for generations,”
The reorganisation is presented as a response to how the businesses already operate today and is designed to link product businesses more directly with creative and commercial teams. The strategy is notable for the scale involved: licensed Disney Consumer Products recorded around $63 billion in retail sales in 2025, underscoring the financial importance of merchandise to the wider Disney machine.
Practical details and personnel
Lisa Baldzicki, appointed president of Disney Consumer Products earlier this year, will remain in her role as the division moves. The announcement also noted that the change is a "work in progress", with finer structural and operational details yet to be finalised.
- The bulk of Disney Consumer Products will sit within the Studios group from October 2026.
- Lisa Baldzicki remains president of the division.
- Executives stressed the reorganisation aims to strengthen links between creative teams and product businesses, rather than drive major job cuts.
Disney presented the move as one likely to involve minimal redundancies; the memo suggested that the practical impact on headcount would be modest. The company has already moved other units into Disney Entertainment this year: in March, Sean Shoptaw and his Games and Digital Entertainment division were transferred into the entertainment structure.
Context and consequences
For a company built on franchises that span films, streaming series, theme parks and shop floors, the administrative location of its consumer products arm is more than bureaucratic housekeeping. Bringing product and creative teams into a closer organisational orbit may accelerate licensing decisions, cross‑promotional activity and the speed at which new characters and concepts are monetised.
That said, the memo’s language — and the decision to call the realignment a "work in progress" — signals that Disney is taking a cautious, staged approach. Moving an operation that supports vast retail networks and third‑party licensees requires careful coordination, from supply chains and retail partnerships to creative approvals and brand stewardship.
| Item | Detail |
|---|---|
| Effective date | October 2026 |
| 2025 retail sales (licensed products) | $63 billion |
| Senior leaders named | Thomas Mazloum, Alan Bergman, Lisa Baldzicki |
Observers will watch whether closer structural alignment delivers faster product rollouts around hit franchises, or whether the principal effect is improved internal coordination. For shareholders and the markets, any such change is also measured against Disney’s broader earnings narrative — hence the timing as the company approaches its quarterly report.
While corporate reshuffles are often accompanied by talk of cost savings and headcount reviews, the message in the memo sought to emphasise continuity and synergies rather than dramatic workforce reductions. As with many large‑scale reorganisations, the final architecture and the day‑to‑day effects on creative teams, licensees and retail partners will unfold over the coming months.
This is the latest example of Disney consolidating its IP ecosystem under creative leadership, a move that reflects the commercial reality that storytelling and merchandise are inextricably linked across the entertainment giant’s global business.
