Key Takeaways:
- Disney is laying off several hundred employees globally across divisions, including film & TV marketing and corporate finance.
- This marks the largest round of layoffs in the past 10 months, part of a $7.5 billion cost-saving initiative.
- Disney reported strong Q2 2025 earnings, with significant contributions from domestic theme parks and successful box office releases like "Lilo & Stitch."
Disney is tightening its belt, and hundreds are feeling it.
The Walt Disney Company has begun laying off several hundred employees globally, marking its fourth and most extensive round of job cuts in the past 10 months.
Teams affected span film and television marketing divisions, TV publicity, casting, and corporate financial operations.
This action is part of a broader cost-cutting initiative that began in early 2023 and has already resulted in over 7,000 jobs being eliminated.
EXCLUSIVE: Major layoffs are underway Monday the Walt Disney Company, with several hundred employees impacted globally, Deadline has learned. The bulk of them are across divisions of Disney Entertainment, including marketing for both film and television as well as television… pic.twitter.com/6vt4GESvex
— Deadline (@DEADLINE) June 2, 2025
While no complete departments are being shut down, key roles in development and publicity are among those impacted.
Most of the affected staff are based in Los Angeles, particularly within Disney Entertainment Television.
The layoffs were identified as part of efforts to manage operations more efficiently to save $7.5 billion while continuing to invest in creativity and innovation.
Cutbacks and Online Backlash
The company announced these staffing cuts shortly after posting solid second-quarter results, which included notable gains from its parks and streaming operations.
Theme parks have delivered robust revenue, and their streaming services added over a million new subscribers.
Films like "Lilo & Stitch" have also performed well at the box office, grossing nearly $619 million globally.
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Still, the entertainment giant faces ongoing pressure to contain costs as audiences continue migrating away from traditional cable television.
Over the past year, Disney has shuttered units such as ABC Signature, folded its scripted teams into 20th Television, and scaled back operations at its entertainment networks.
The layoffs have also sparked fresh criticism from online commentators.
Some social media users pointed to the underperformance of certain recent Disney titles and reignited the use of slogans like “go woke, go broke.”
DISNEY IN 4TH ROUND OF LAYOFFS IN A YEAR - ARE WE WINNING?
— Real America's Voice (RAV) (@RealAmVoice) June 4, 2025
“How is this possible, when plus sized women are spending a grand on food there?” - @alexstein99
“Thirty year olds eating churros with Mickey Mouse ears? We have to fix our culture.” - Chloe Castillo@JobobTaeleifipic.twitter.com/yBrXfMbLz6
Much of the criticism stems from controversy surrounding films such as "Snow White."
It struggled at the box office and faced backlash for both its creative direction and public comments made by lead actress Rachel Zegler.
Despite public debate, the company remains focused on its restructuring plans.
CEO Bob Iger said during the 2025 Annual Shareholders Meeting that Disney is creating new roles in parks and experiences, even as cuts continue in more traditional media operations.
“Right now, we have more projects underway around the world than at any time in our history.
Magic Kingdom is undergoing the largest expansion ever, including a new area inspired by Cars and the much-anticipated villains-themed land.
A Monsters Inc. themed land is coming to Hollywood Studios,” Iger said.
The shift in strategy reflects a broader reevaluation of how entertainment companies organize around digital growth and changing viewer preferences.
Our Take: What Can Agencies Learn from Disney’s Reset?
As someone who works closely with creative and digital agencies, I see Disney’s latest layoffs as more than a corporate belt-tightening.
It’s a signal. Traditional media giants are no longer insulated from hard pivots, even when their top-line numbers look strong.
The lesson here isn’t just about cost control. It’s about strategic prioritization.
Disney is clearly redirecting its focus to where future growth lies: streaming, CTV advertising, immersive experiences, and scalable digital content.
Connected TV ad spending is projected to climb to $46.89 billion by 2028, overtaking traditional TV’s $45.10 billion for the first time, according to eMarketer.
Digital agencies should take note.
Success today demands uncomfortable decisions and the discipline to sunset legacy structures, even when they’re familiar or emotionally embedded.
It’s also a reminder that public narratives can shape perception quickly.
When your content carries cultural weight, your business decisions will be scrutinized far beyond the balance sheet.
Meanwhile, Microsoft also recently cut about 6,000 jobs to streamline its operations and direct funding to its AI infrastructure initiatives.
