LAYOFFS Hit Disney TV, Film Divisions!
Walt Disney Co. is cutting hundreds of jobs across its entertainment divisions as it pivots more aggressively toward streaming, part of a sweeping effort to reduce costs and refocus the company’s long-term strategy.
At a Glance
Disney has laid off 200 employees across its TV and film units.
Cuts affect marketing, casting, finance, and development departments.
The layoffs are part of a broader $7.5 billion cost-reduction plan.
Disney is launching a new ESPN streaming service priced at $29.99.
Company shares dipped 0.4% after the announcement.
Targeted Cuts, Strategic Shift
The latest round of layoffs affects approximately 6% of staff in divisions like ABC News and Disney Entertainment Networks, according to Deadline. Marketing, publicity, development, and financial teams were the hardest hit. A Disney spokesperson emphasized the company’s “surgical” approach in minimizing broader disruption while “fueling the state-of-the-art creativity and innovation” for which Disney is known.
These layoffs follow two earlier rounds in 2023 that eliminated over 7,200 jobs. CEO Bob Iger acknowledged the challenges but remained upbeat, saying, “We remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year.”
Watch a report: Disney lays off hundreds amid strategic shift.
Betting Big on Streaming
At the core of Disney’s transition is its intensified focus on direct-to-consumer platforms. The upcoming launch of a standalone ESPN streaming service, priced at $29.99, represents a bold effort to carve out new revenue streams in a fiercely competitive landscape. Details on the service are expected by late summer.
Disney’s restructuring comes amid similar moves by rivals like NBCUniversal, signaling a broader industry contraction driven by evolving viewer habits and economic pressure. As legacy TV advertising continues to decline, Disney aims to dominate the future of media by investing in platforms like Disney+, Hulu, and now, ESPN’s digital debut.
Markets React, Industry Watches
Despite second-quarter revenue climbing 7% to $23.6 billion, investor response to the layoffs was muted. Bloomberg reported a slight 0.4% drop in stock price after the announcement — a signal that Wall Street remains cautious about the success of Disney’s transformation.
The company’s high-stakes balancing act — cutting costs while staying innovative — could define the next phase of its corporate legacy. As Iger and his team chart a course through the streaming age, all eyes will be on how Disney weathers this turbulent media transition.