Disney is undergoing a new round of layoffs, which follows previous job cuts that included nearly 200 staffers in March 2025 and 75 employees in October 2024 across ABC News and local stations.

The layoffs, which took effect on June 2, 2025, are aimed at enhancing operational efficiency, affecting teams in marketing for film and television, casting, development, and corporate finance, though no entire teams are being eliminated.

In light of the ongoing transformation in the entertainment industry, Disney is evaluating its business management strategies to maintain creativity and innovation.

This restructuring comes as Hollywood studios, including Disney, are reducing film releases due to decreased theater attendance and a significant shift from cable subscriptions to streaming services.

Despite these layoffs, Disney's latest earnings report from May 2025 exceeded Wall Street expectations, driven by strong performance from Disney+ and its theme parks, leading to a 21% rise in stock value.

CEO Bob Iger acknowledged that the company had previously focused too much on quantity over quality in content production, which influenced the decision to implement layoffs.

The layoffs at Disney coincide with ESPN's plans to launch a streaming app in the fall, targeting cord-cutters with live games and a robust channel lineup.

Similar job cuts are occurring at NBCUniversal, which is also restructuring its operations and spinning off several cable networks.

While the exact number of layoffs has not been disclosed, reports indicate that lower-level development executives, including those at ABC Hulu, have been impacted.

Insiders noted that these layoffs were anticipated given the company's ongoing financial challenges and previous strategies.

Looking ahead, Disney anticipates double-digit growth in operating income for its entertainment and sports segments, as well as 6%-8% growth for its theme parks and consumer products for the fiscal year ending in September 2025.

In addition to restructuring, Disney is exploring growth opportunities in its parks and experiences business, including the development of a new theme park in Abu Dhabi.