Disney Announces Major Layoffs as Part of Cost Cutting and Streaming Strategy
June 3 2025
Disney has laid off “Hundreds of employees across its entertainment and corporate divisions as it restructures to cut costs and prioritize streaming . Learn about the scope impact and what’s next for the company .
The Walt Disney Company has carried out another substantial round of layoffs impacting several hundred employees across its film television and corporate finance departments. This move aligns with Disney’s broader strategy to cut costs and adapt to an industry increasingly dominated by streaming services marking a critical phase in the company’s restructuring plan .
Scope and Impact of the Layoffs
This latest workforce reduction primarily targets the Disney Entertainment division with roles affected in marketing publicity casting development and corporate finance. While Disney has not publicly disclosed an exact figure multiple reports confirm that several hundred employees have been laid off globally with a large portion located in the United States .
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This is the fourth and largest round of layoffs the company has executed in the last ten months. Previous reductions occurred in March July and October 2024. Earlier this year nearly 6 percent of the staff within the ABC News Group and Disney Entertainment Networks were also let go as part of the ongoing restructuring .
Strategic Shift Towards Streaming
The layoffs Reflect Disney’s ongoing transformation to align its business with the realities of today’s media consumption habits . CEO Bob Iger who resumed leadership in late 2022 has emphasized the importance of prioritizing digital and streaming platforms in response to declining linear TV audiences .
To further this strategic shift Disney is consolidating its content creation and distribution functions. It has also outsourced parts of its technical operations including those of ESPN to cost effective locations such as Mexico and Connecticut in an effort to streamline workflows and reduce operational expenses .
Financial Objectives and Previous Cost Cutting Measures
Disney’s cost reduction initiative began in February 2023 with a target of 5.5 billion in savings. That goal was later increased to 7.5 billion. The company has since eliminated approximately 7000 positions worldwide .
Despite these reductions Disney has maintained strong financial performance. Its latest earnings report in May 2025 exceeded Wall Street expectations driven by gains in its streaming division including Disney Plus and robust revenue from its theme parks. Following the report Disney’s stock rose by 21 percent although it experienced a slight decline of 0.3 percent to 112.62 on the day the layoffs were publicly announced .
Looking Ahead
Disney’s latest layoffs underscore its commitment to evolving alongside the rapidly changing entertainment landscape . With a clear focus on expanding its digital and streaming operations the company aims to solidify its leadership in the industry while ensuring long term profitability and operational efficiency .
As Disney continues to restructure and refine its approach further changes in staffing and strategic direction are likely ensuring it remains agile in an increasingly competitive market .