In a strategic move aimed at optimizing operational efficiency, Disney has announced a global layoff that will impact several hundred employees. These layoffs are part of the entertainment giant’s ongoing efforts to streamline costs and enhance its corporate structure without entirely dismantling any specific teams. This decision comes as Disney continues to navigate the evolving landscape of the entertainment industry.
According to an individual familiar with the matter, the layoffs will affect a limited number of positions across various departments, including marketing for both film and television, publicity, casting, development, and corporate financial operations. Despite the scale of these layoffs, Disney has ensured that entire teams will not be eliminated, maintaining a level of stability within its workforce.
This recent announcement marks the fourth and largest series of layoffs impacting Disney’s television operations. Earlier this year, nearly 200 jobs were cut in March, representing approximately 6% of the workforce at ABC News Group and Disney Entertainment Networks. Additional layoffs included 75 staffers across ABC News and its owned stations in October and 140 Disney Entertainment Television staffers last July.
In October, Disney also restructured its entertainment segment by combining ABC Entertainment and Hulu’s scripted drama and comedy teams under the leadership of Simran Sethi. Furthermore, ABC Signature was integrated into 20th Television, led by President Karey Burke. These strategic changes are part of Disney’s broader plan to consolidate its resources and enhance its competitive edge in the industry.
The layoffs coincide with Disney’s impressive financial performance in the second quarter of 2025. The company reported a quarterly profit of $3.28 billion, surpassing Wall Street expectations. Revenue saw a growth of 7%, reaching $23.6 billion. Disney’s entertainment segment, which includes Disney+, Hulu, and the company’s linear networks, experienced a revenue increase of 9% to $10.68 billion. The operating profit for this segment surged by 61% to $1.26 billion, driven by better results in direct-to-consumer services and content sales, licensing, and other areas.
Disney’s streaming services, Disney+ and Hulu, posted a combined operating profit of $336 million, a significant jump from $47 million a year ago. With ESPN+ included, the three streaming services boast a total subscriber base of 204.8 million. However, Disney has not disclosed whether ESPN+ recorded a profit or loss in the recent quarter.
In contrast, revenue from Disney’s linear networks saw a decline of 13%, settling at $2.42 billion. Nevertheless, operating income increased by 2% to $769 million. Domestic linear revenues fell by 3% to $2.2 billion, while operating income rose by 20% to $625 million. This increase was attributed to lower technology, marketing, programming, and product costs, alongside reduced advertising revenue due to lower rates, average viewership, and impressions.
Internationally, linear network revenue declined by 55% to $223 million, and operating income plummeted by 84% to $15 million, primarily due to the Star India transaction with Reliance Industries.
Content sales, licensing, and other areas experienced robust growth, with revenue increasing by 54% to $2.15 billion. This segment swung to a profit of $153 million from a loss of $18 million a year ago, fueled by increased sales of episodic content, the home entertainment success of “Moana 2,” and the continued theatrical performance of “Mufasa: The Lion King.”
Beyond its television unit, Disney has previously implemented layoffs in other areas, including 300 corporate staff members last September and 175 employees from Pixar in May 2024.
As Disney continues to refine its operations and adapt to the dynamic entertainment landscape, the company remains committed to its mission of delivering exceptional content to audiences worldwide. For more updates on Disney’s strategic initiatives and industry insights, follow fintechfilter.com.
Note: This article is inspired by content from https://www.thewrap.com/disney-layoffs-film-television/. It has been rephrased for originality. Images are credited to the original source.