Disney Cuts Hundreds of Jobs in Film and TV Amid Industry Challenges

Key Highlights

• Disney lays off several hundred employees across film, TV, marketing, and finance divisions, reflecting ongoing industry challenges and a shift towards streaming platforms.
• This marks the fourth and largest round of layoffs in ten months, as Disney restructures operations to adapt to declining traditional TV viewership.

Walt Disney Co. is laying off hundreds of employees across its film and television divisions, highlighting the entertainment industry's downturn.

According to the company, the staff reductions began on June 2 and will affect employees in marketing, publicity, casting and development, as well as corporate financial operations.

Hollywood has been in a cost-cutting mode for several years, with both production and employment declining. To increase profitability, studios have reduced the number of films they release, especially since cinema attendance remains lower than pre-pandemic levels. Consumers, meanwhile, are canceling cable TV subscriptions in favor of streaming services, reducing advertising and distribution revenue for traditional channels.

The changes are causing a massive reorganisation of the business.

Comcast plans to spin off the majority of its cable TV channels, including MSNBC, USA, and CNBC, by the end of 2025. Warner Bros Discovery has also completed an internal restructuring to separate its studio and cable TV operations, which could lead to the latter's divestment. More cuts are expected at Paramount Global as it pursues a merger with independent film and television studio Skydance Media.

Disney had previously considered divesting its own TV networks, including ABC, but ultimately chose to keep the assets. In February 2023, the company announced a retrenchment, cutting 7,000 jobs to save US$5.5 billion (S$7.1 billion). Disney later raised its target to US$7.5 billion. Competitors have also laid off thousands of employees.

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The most recent reductions follow approximately 200 job cuts across Disney's ABC and entertainment TV networks in March. In recent years, the company has eliminated over 8,000 positions in an effort to increase profitability.

The latest layoffs were first reported by Deadline, an entertainment industry publication. At the end of its last fiscal year in September 2024, Disney had approximately 233,000 employees, with 76% of them being full-time.