Disney Layoffs Deepen as Streaming Disrupts TV and Film Operations

Subscribe to our free newsletter today to keep up to date with the latest retail news.

The Walt Disney Company confirmed a new round of job cuts, impacting several hundred employees across its film, television, and corporate finance operations. The layoffs span global teams, including marketing, publicity, casting, and development roles.

The strategy responds to the continuing decline of traditional cable television and the rise of on-demand streaming platforms. Disney’s leadership is adapting the company’s structure to align more closely with these consumer trends, optimizing operations around its flagship platforms, including Disney+ and Hulu.

Disney’s cost-cutting measures

This is not the first time Disney has implemented workforce reductions as part of a broader cost-savings initiative. In 2023, CEO Bob Iger launched a plan to eliminate 7,000 positions to save approximately $5.5 billion. That restructuring aimed to restore profitability in Disney’s streaming units and cut costs across its divisions. Earlier in 2025, additional layoffs affected Disney Entertainment Networks and the ABC News Group, reducing their workforce by nearly 6 percent.

Streaming and parks drive growth

Despite the layoffs, Disney’s financial performance has exceeded expectations. The company’s second-quarter earnings report in May showed a 20 percent increase in adjusted earnings per share. This was driven by strong performance in streaming services and the experiences division.

Disney+ added 1.4 million subscribers, reaching 126 million globally. Meanwhile, the experiences division, which includes theme parks and resorts, reported a 9 percent increase in operating income. Following the earnings report, Disney’s stock rose by 21 percent, though it slipped slightly to $112.62 on the day the layoffs were disclosed.

The broader shift to digital media

Disney’s restructuring reflects a broader trend in the media and technology industries. Companies once dependent on linear television are shifting to digital-first models. This includes shedding legacy infrastructure and reallocating budgets toward platforms that provide personalized, on-demand content.

Tech giants such as Meta and Microsoft have also announced major layoffs in recent years to refocus on artificial intelligence, cloud services, and immersive technologies. The intersection of media and technology has created a competitive landscape in which streaming success depends on data, global distribution, and personalization.

Disney is expected to continue investing in streaming and expanding its global reach. The company has announced plans to build a new theme park in Abu Dhabi, its first major project in the Middle East hospitality market.

This expansion complements its effort to diversify revenue and attract new audiences. While the layoffs mark a challenging transition, they are part of a calculated effort to prepare Disney for long-term growth in a shifting entertainment economy.

Sources:

• Fortune article on Disney layoffs