Disney announced a fresh round of layoffs affecting hundreds of workers across its TV, film, and finance divisions on Monday. The cuts hit several departments as the entertainment giant continues reshaping its business for a streaming-focused future.
Employees received notices early Monday morning, with the majority of cuts targeting Disney Entertainment, which oversees content creation and distribution. This marks the company’s third significant workforce reduction in just 18 months.
“These decisions are never made lightly,” said Disney CEO Bob Iger in an internal memo obtained by UPI. “We’re taking necessary steps to position our company for sustainable growth in a rapidly evolving media landscape.”
The latest cuts affect approximately 2.5% of Disney’s global workforce, with notable impacts at ABC News, Disney Television Studios, and the company’s corporate finance team. Workers in California, New York, and Florida offices received termination notices, with many longtime employees among those affected.
Industry analysts point to several factors driving these layoffs. Disney faces pressure to reduce costs amid ongoing challenges in its streaming business. Disney+ lost nearly 4 million subscribers in the previous quarter despite price increases across its streaming platforms.
“Disney is caught between two worlds,” explained Jessica Martinez, media analyst at Morgan Stanley. “They’re managing the decline of traditional TV while building streaming businesses that have yet to achieve consistent profitability.”
The job cuts align with Disney’s broader restructuring plans announced last February, when Iger returned as CEO and pledged to trim $5.5 billion in costs. The company previously eliminated approximately 7,000 positions in two major reduction phases during 2023.
Disney’s stock has struggled this year, down nearly 8% since January as investors question the company’s long-term growth strategy. The entertainment giant faces intense competition from Netflix, Amazon, and Apple in the streaming wars while its traditional television business confronts declining viewership.
Several affected employees shared their experiences on social media platforms. “After 12 years at ABC, I was told my position has been eliminated,” wrote one producer who requested anonymity. “Many talented colleagues are in the same boat today.”
Disney isn’t alone in cutting media jobs. Warner Bros. Discovery, Paramount, and Comcast have all announced significant layoffs in recent months as traditional media companies adapt to changing consumer habits and advertising patterns.
The cuts reflect broader trends in entertainment as studios reassess content investments. Disney has reduced its annual content spending budget by approximately $2 billion, focusing on fewer but potentially more impactful productions.
“The entire industry is recalibrating,” said Robert Thompson, professor of television and popular culture at Syracuse University. “The streaming gold rush led to unsustainable spending, and now we’re seeing the inevitable correction.”
Financial analysts generally supported Disney’s cost-cutting measures. “These are difficult but necessary steps,” said Michael Nathanson of MoffettNathanson Research. “Disney needs to rightsize its operations for the current reality of the media business.”
Beyond immediate job losses, the cuts signal Disney’s strategic pivot toward fewer but larger franchise films and shows. The company plans to reduce its overall content output while investing more heavily in established brands like Marvel, Star Wars, and core Disney animation.
Union representatives expressed concern about the impact on workers. “These ongoing cuts create tremendous uncertainty for our members,” said the Writers Guild of America West in a statement. “Companies should be investing in the creative workforce that drives their business, not treating them as expendable.”
Disney emphasized that affected employees would receive severance packages and job placement assistance. The company also stated that certain divisions, including parks and experiences, remain in growth mode with active hiring in select areas.
As streaming competition intensifies, Disney faces critical choices about its future. The company recently announced plans to crack down on password sharing on Disney+ following Netflix’s successful implementation of similar measures.
For investors and industry watchers, the key question remains whether these cuts represent a temporary adjustment or signal more fundamental challenges for Disney’s business model as it navigates the rapidly changing media landscape.
