Disney has announced plans to lay off several hundred people across the world, according to a report this week from Deadline. But what’s driving the decision?
Which areas are most impacted?
The layoffs are hitting several core creative and support functions. Specifically, the article states that workers in:
- Film departments
- Television departments
- Finance departments (including corporate finance)
- Marketing departments for both film and television units
- Casting and development
To me, these specific areas clearly point to a strategic trimming – not just cost-cutting, but a deeper reshaping of Disney’s creative and financial DNA. Disney states no teams will be entirely closed, implying a strategic scaling back, not a complete elimination of departments.
Reasons behind the cuts
The article highlights 3 main reasons for the layoffs:
- Industry Transformation & Shift to Streaming: This is the overarching reason given by Disney for the layoffs. The Deadline article highlights that viewers are moving “away from cable TV subscriptions in favour of streaming platforms.”
- Continuation of Cost-Saving Initiative: These layoffs aren’t a new, isolated event. They follow the major layoffs announced in 2023, part of CEO Bob Iger’s ambitious plan to save $5.5 billion.
- Efficiency While Fueling Creativity: Disney claims these cuts are about “efficiently managing our businesses while fuelling the state-of-the-art creativity and innovation.”
What can we take from this?
Interestingly, these layoffs are happening shortly after Disney reported “stronger than expected earnings in May,” with revenue up 7% due to Disney+ subscriber growth. It’s striking – and a little disheartening – to see layoffs follow strong streaming growth. Clearly, subscriber numbers aren’t the only metric that matters anymore; profitability is taking the wheel.
From a film perspective, it’s been a bit of a mixed bag for Disney of late: Snow White significantly underperformed, while the live action remake of Lilo & Stitch has broken numerous box office records.
These layoffs aren’t unusual for Disney, they appear to be part of Bob Iger’s plan to reshape Disney. These layoffs are also planned for employees across the globe, showing it’s a global realignment, not just a domestic focus.
These layoffs may be framed as strategy, but they’re also a reminder that even in times of growth, creative workers are rarely safe in corporate restructuring – especially when Wall Street’s approval seems to matter more than storytelling.
Have you or someone you know been impacted by the changes at Disney? Or do you have thoughts on how the entertainment industry is evolving? I’d love to hear from you in the comments.
Steamboat Charlie 