The Walt Disney Company is set to lay off several hundred employees globally across its film, television, and corporate finance departments, according to a source familiar with the developments. The decision, revealed on Monday, June 2, 2025, reflects the entertainment giant’s ongoing efforts to restructure its operations amid a dramatic shift in consumer media consumption habits.

The layoffs will affect multiple teams worldwide, particularly within film and television marketing, publicity, casting, and development units, the source confirmed. This marks another significant move by Disney to streamline its operations as it pivots from traditional broadcast and cable TV toward direct-to-consumer streaming platforms.

This isn’t the first wave of cost-cutting by Disney in recent years. In 2023, the company slashed 7,000 jobs, aiming to save 5.5 billion dollars in operating costs. That round of layoffs was part of a broader corporate transformation to simplify content creation and distribution pipelines, and to centralise decision-making across divisions.

Disney's latest workforce reduction comes despite the company reporting strong earnings in May 2025. The positive results were driven by a surprise growth in its Disney+ streaming service, along with robust performance from its global theme parks, which have been consistently profitable post-pandemic.

Yet, the company continues to face long-term structural challenges, primarily stemming from the decline of cable television. Millions of subscribers have been cutting the cord, opting instead for on-demand digital content. This consumer migration is compelling media giants like Disney to reassess traditional business units, and reallocate resources towards growth areas such as streaming, international content, and interactive digital media.

According to industry analysts, the impact of this decision will be widely felt across Hollywood, as Disney remains one of the most influential studios globally. The film and TV marketing departments, in particular, are expected to undergo significant restructuring, with digital-first promotion strategies replacing legacy campaign models. Similarly, corporate finance operations are being consolidated to create a leaner decision-making process, possibly by centralising functions across geographies.

The layoffs come at a time when the global media industry is undergoing seismic shifts. Traditional revenue streams such as TV advertising and theatrical releases have been under pressure, while the streaming war among Disney+, Netflix, Amazon Prime Video, and others intensifies. To remain competitive, Disney is focusing not only on growing its subscriber base but also on increasing profitability per user, which includes controlling backend costs like staffing and overhead.

The restructuring also hints at broader cultural and operational changes within Disney. Reports indicate that Disney is adopting a more agile production environment, moving away from long-term fixed contracts and opting for project-based employment models, which could become more prevalent industry-wide.

In recent investor calls, Disney CEO Bob Iger reiterated the company’s commitment to profitability in streaming, noting that content quality, targeted spending, and global market growth were the key pillars of the company’s future. He acknowledged the painful but necessary adjustments needed to meet these objectives, and the current layoffs seem aligned with that vision.

Additionally, Disney is expected to merge overlapping functions between its streaming and legacy broadcast divisions, allowing for greater synergy and reducing redundancies. For example, teams managing content acquisition, promotion, and analytics for both ABC and Disney+ may now report under unified leadership structures.

Despite the negative news of job losses, Wall Street analysts reacted cautiously optimistic, suggesting that operational discipline was essential for Disney to maintain momentum in a highly competitive media environment. Shares of Disney saw a modest uptick following the announcement of further cost optimisation.

While these layoffs represent a setback for many employees, Disney’s larger strategy focuses on reinventing itself as a digital-first media powerhouse. Its dual strength in IP creation (Marvel, Star Wars, Pixar) and distribution (Disney+, ESPN+, Hulu) puts it in a unique position to navigate this transformation successfully—provided the company continues to adapt rapidly and invest wisely.

In conclusion, the job cuts are part of a larger narrative playing out across the global media landscape, where legacy companies are reinventing themselves to remain relevant in the age of streaming and AI-driven content curation. Disney, as always, remains under the spotlight—not only for its content but also for its strategic decisions that influence the future of global entertainment.

Let me know if you’d like a visual infographic or social media-ready version of this article.