In a fresh wave of restructuring, The Walt Disney Company has laid off hundreds of employees globally, marking its fourth major round of job cuts in less than a year. These layoffs are part of a massive $7.5 billion cost-cutting plan as the company continues to pivot from traditional media to streaming-first strategies.
The latest round of layoffs is part of Disney’s ongoing strategy to streamline operations and reduce overhead as the media industry undergoes significant disruption. While the company has not disclosed the exact number of employees affected in this round, insiders confirm that multiple divisions including marketing, television publicity, casting and development, and corporate finance have been impacted.
These job cuts follow three previous rounds over the last 10 months. Since 2023, more than 8,000 positions have been eliminated at Disney across different departments and regions. Although the company insists that the latest cuts are “surgical” and do not involve eliminating entire teams, the cumulative effect is substantial and reflects a broader trend in the entertainment industry.
Why Disney is Cutting Costs Now
The entertainment landscape is evolving rapidly. The decline of linear television, once a major revenue driver for Disney, has forced the company to reevaluate its business model. According to the company’s most recent earnings report, revenue from its linear networks dropped 13% year-over-year, while revenue from its direct-to-consumer (DTC) segment, including Disney+, Hulu, and ESPN+, rose 8%.
This shift highlights a core challenge: the collapse of traditional pay-TV subscriptions. With consumers increasingly cutting the cord in favor of on-demand, ad-free streaming experiences, Disney and its peers are being forced to transform decades-old structures built around broadcast and cable.
The cost-cutting strategy, spearheaded by CEO Bob Iger, is intended to make the company leaner and more adaptable to the streaming-first era. That means investing in technology, original streaming content, and global digital distribution—while scaling back on legacy operations that no longer deliver sustainable growth.
Divisions Hit: From Marketing to News and Entertainment
This round of layoffs comes just months after significant restructuring within Disney’s news and entertainment division. Earlier in the year, nearly 200 positions were slashed, with major changes at ABC News. Shows like 20/20 and Nightline saw production teams consolidated, and morning programming under the Good Morning America banner was reorganized.
Perhaps most notably, Disney shuttered FiveThirtyEight, the once-prominent political and data journalism outlet known for its election forecasts and in-depth analytics. This move was seen as symbolic of Disney’s shift away from non-core digital journalism to focus on high-ROI entertainment products.
In the most recent round, Disney has also cut deeply into its marketing and publicity teams, particularly those supporting both film and television. Insiders report that roles in international marketing and casting development have been restructured or eliminated altogether, indicating a consolidation of creative and promotional functions.
Interestingly, the layoffs come on the heels of strong second-quarter financial results. Disney recently announced that its revenue and earnings exceeded Wall Street expectations, driven largely by better-than-expected performance in its parks and streaming divisions.
Investors responded positively. Disney’s stock price has risen more than 20% since the earnings release, buoyed by optimism over the company’s long-term transformation. Announcements of ambitious new ventures such as the upcoming theme park and resort in Abu Dhabi, Disney’s first in the Middle East further reinforced the company’s strategic vision for global expansion.
Despite the positive trajectory, Disney continues to operate in an environment where profitability in streaming remains elusive. Competitors like Netflix have achieved consistent profits in DTC, but Disney is still in a high-spending phase, juggling massive content investments with demands for cost discipline.
The layoffs are part of Disney’s broader blueprint to reposition itself for the next decade of media consumption. Under Bob Iger’s renewed leadership, the company is focusing on:
- Scaling down overhead and bureaucracy
- Increasing efficiency across content development and distribution
- Targeted international growth, particularly in untapped markets like the Middle East
- Aggressive investment in streaming infrastructure and exclusive content
With declining revenues from legacy platforms, Disney is betting big on a digital-first future one where personalization, global accessibility, and premium storytelling take center stage.
While job cuts are never easy, they are often seen as necessary measures during periods of transformation. Disney maintains that it is approaching the process with care and strategic clarity, avoiding wholesale eliminations while still seeking long-term financial stability.
For employees, however, the toll is undeniable. In a fiercely competitive media labor market already shaken by layoffs at companies like Warner Bros. Discovery and Paramount, displaced workers may face uncertain paths ahead.
Disney’s latest layoffs underscore the harsh realities of adapting to a rapidly changing entertainment ecosystem. As traditional television continues its decline, the pressure to realign corporate structures with digital priorities has become paramount.
Though these moves are difficult, they signal Disney’s intent to remain competitive, innovative, and agile.
