Disney Lays Off Hundreds Amid Streaming Shift

Strategic Shift Amid Industry Challenges

The layoffs, which took effect on Monday, June 2, 2025, reflect Disney's response to the ongoing decline in traditional television viewership and the increasing dominance of streaming platforms. As audiences continue to migrate from cable TV to digital streaming services, Disney is restructuring its operations to better align with these evolving consumer preferences.

A company spokesperson emphasized that the decision to eliminate jobs was made after careful consideration, aiming to operate more efficiently while maintaining the creativity and innovation that Disney is known for.

This round of layoffs marks the fourth significant workforce reduction in the past year. Earlier in 2025, Disney cut nearly 6% of its staff in the ABC News Group and Disney Entertainment Networks, affecting approximately 200 employees. These previous cuts were part of a broader strategy to reduce costs amid shrinking TV ratings and revenue.

Impacted Divisions & Global Reach

The recent layoffs have affected employees primarily in the United States, with many based in Los Angeles. However, the impact is global, extending to Disney's international operations. The affected departments include:

• Film and television marketing: Staff responsible for promoting Disney's film and television content
• TV publicity: Teams handling public relations and media outreach for television programming
• Casting and development: Personnel involved in selecting talent and developing new projects
• Corporate finance: Employees managing financial operations and strategy

Despite the significant number of layoffs, Disney has stated that no entire teams have been eliminated. The company described the cuts as "surgical," aiming to minimize the number of impacted employees while achieving operational efficiency.

Broader Restructuring & Cost-Cutting Initiatives

The recent layoffs are part of a broader restructuring effort initiated by Disney CEO Bob Iger, who returned to the company in late 2022. In early 2023, Iger announced plans to reduce the company's workforce by 7,000 employees and implement a cost-cutting program aimed at saving $5.5 billion. This initiative included consolidating operations, streamlining departments, and reducing the volume of content produced for traditional television.

As part of this strategy, Disney has also made significant changes to its programming approach. In March 2025, the company announced that all television series in production and development at Walt Disney Animation Studios had been shelved. The studio is pivoting away from long-form content for streaming platforms and focusing on theatrical feature films.

Financial Performance & Future Outlook

Despite the ongoing restructuring efforts, Disney reported better-than-expected earnings for the second quarter of 2025. The company's streaming service, Disney+, achieved profitability for the first time, and its theme parks and experiences division contributed positively to the overall financial performance. 

Looking ahead, Disney is exploring new growth opportunities, including the development of a new theme park in Abu Dhabi. The company announced plans to partner with Miral Group to build Disneyland Abu Dhabi, its first new resort in a generation. This venture reflects Disney's commitment to expanding its global presence and diversifying its revenue streams. 

The challenges faced by traditional media companies in adapting to the digital age have reached giants such as Disney. As audiences continue to shift toward streaming platforms, Disney is making difficult but necessary decisions to ensure its long-term viability. While these changes are impactful for the affected employees, they reflect the company's broader strategy to streamline operations and position itself for future success in an increasingly competitive media landscape.