Disney Lays Off Hundreds More Staff in Cost-Cutting Drive

The Walt Disney Company laid off hundreds of employees on Tuesday in the latest wave of redundancies, as the entertainment giant continues to streamline its operations through project reductions, tighter budgets, and a more integrated corporate structure. A Disney spokesperson confirmed the job cuts, stating that the company is eliminating hundreds of positions across various corporate functions, Disney Entertainment Television, ESPN, and Disney studios. According to media reports, affected employees began receiving layoff notices on Tuesday morning local time. Disney has not disclosed the exact number of redundancies in each division nor indicated whether there will be additional cuts. The company ended fiscal year 2025 with approximately 231,000 employees worldwide, including around 172,000 in the United States. Pixar, the Emeryville, California-based studio known for blockbuster films such as ‘Toy Story’, was the studio most affected by the layoffs, with less than 10 per cent of its roughly 1,100 employees being let go, the Los Angeles Times reported, citing a source familiar with the matter. The headcount reduction comes even as Pixar is experiencing a boost in box office revenue this year. ‘Toy Story 5’, released last month, has grossed more than 957 million US dollars worldwide. The wave of redundancies reflects a broader shift in Disney’s studio strategy. Over the past three years, Walt Disney Studios has reduced production volume, emphasised quality, and prioritised theatrical releases that can support the company’s streaming services, consumer products, theme parks, and other businesses. Several Pixar films, including ‘Soul’, ‘Luca’, and ‘Turning Red’, were released directly via Disney+ during the pandemic. Company executives later acknowledged that the move likely encouraged some families to wait for Pixar films to become available for home viewing. National Geographic was the brand most affected within the Disney Entertainment Television unit. Deadline reported that up to 100 positions were eliminated across the television group, with the majority of cuts occurring at National Geographic’s cable network, editorial teams, and operations teams. Dozens of ABC News employees were also affected, alongside limited reductions at Disney Entertainment Television. At ESPN, Tuesday’s layoffs were largely related to the integration of NFL Network assets into the sports network. ESPN Chairman Jimmy Pitaro told employees in a memo that the company had spent months evaluating teams, resources, and organisational structure following the acquisition of NFL assets, and had made a number of difficult decisions regarding the impact on jobs. Several public figures at ESPN were reportedly affected, including ‘SportsCenter’ anchor and baseball commentator Karl Ravech, as well as former NFL player and analyst Ryan Clark. The redundancies mark Disney’s third wave of layoffs this year and follow a broader restructuring under CEO Josh D’Amaro. In January, Disney consolidated its marketing operations. In April, the company cut approximately 1,000 positions across its studios, television networks, ESPN, products and technology division, and corporate departments. For employees and audiences alike, the latest layoffs underscore an uncomfortable reality: even successful brands are not immune to cost-cutting measures. Pixar’s recent box office strength, ESPN’s expanding NFL footprint, and National Geographic’s long-established name did not prevent the redundancies, as Disney continues to evaluate its required workforce, the types of projects it will pursue, and its investment priorities. ‘These mergers are destroying the industry,’ a Pixar employee told Xinhua on condition of anonymity. ‘Studios may save millions of dollars, but the people who worked hard to build the company and create its world-famous products are being cast aside, and the entire industry and California’s economy are suffering as a result.’