Disney increases layoffs as streaming disrupts TV and film operations
The Walt Disney Company has announced a new wave of layoffs affecting numerous employees in its film, television, and corporate finance sectors. This decision encompasses various global teams, including marketing, publicity, casting, and development positions. The restructuring is a response to the ongoing decline of conventional cable TV and the surge of on-demand streaming services. Disney’s executives are recalibrating the company’s framework to better align with modern consumer patterns by streamlining operations around key platforms like Disney+ and Hulu.
This move is not unfamiliar territory for Disney, as past job cuts have been part of a broader cost-cutting strategy. In 2023, CEO Bob Iger initiated a plan to eliminate 7,000 jobs to save an estimated $5.5 billion. The goal was to enhance profitability in Disney’s streaming divisions and reduce expenses across various segments. Earlier in 2025, additional layoffs impacted Disney Entertainment Networks and the ABC News Group, resulting in a nearly 6 percent reduction in their workforce.
Despite these layoffs, Disney’s financial performance has exceeded projections. The company’s second-quarter earnings report in May indicated a 20 percent rise in adjusted earnings per share. This uptick was largely driven by robust performance in streaming services and the experiences division. Disney+ saw an additional 1.4 million subscribers, bringing the total to 126 million globally. Likewise, the experiences division, which encompasses theme parks and resorts, reported a 9 percent increase in operating income. Post-earnings report, Disney’s stock climbed by 21 percent, although it experienced a slight dip to $112.62 on the day the layoffs were revealed.
Disney’s recent restructuring mirrors a broader trend within the media and technology sectors. Companies that once relied heavily on linear television are now pivoting towards digital-first models. This includes divesting from outdated infrastructure and reallocating resources towards platforms that offer personalized, on-demand content. Major tech entities like Meta and Microsoft have also undergone substantial layoffs to realign their focus on artificial intelligence, cloud services, and immersive technologies. The convergence of media and technology has cultivated a competitive environment where streaming success hinges on data, global reach, and personalization.
Looking ahead, Disney is anticipated to continue investing in streaming services and extending its global footprint. The company’s plans to establish a new theme park in Abu Dhabi mark its initial venture into the Middle East’s hospitality market. This expansion complements Disney’s broader strategy to diversify revenue streams and attract novel audiences. Although the layoffs signify a challenging transition, they are integral to Disney’s strategic efforts to position itself for sustained growth in an evolving entertainment landscape.