Disney cuts nearly 2% of product and tech employees amid restructuring
The Walt Disney Company has initiated yet another round of job cuts, this time affecting just under 2% of the workforce within its Disney Entertainment and ESPN product and technology division. The development was first reported by TheWrap, citing a source familiar with the matter.
While the exact number of affected employees has not been publicly disclosed, the company has characterised the move as a “rebalancing of resources”, rather than a sign of contraction. Disney says it remains committed to investing in growth opportunities within the product and technology space.
The affected division is led by Adam Smith, who joined Disney last year and has overseen a period of significant transformation within the company's digital strategy. Under Smith’s leadership, Disney has cracked down on password sharing for Disney+, launched subscriber perks programmes for Disney+ and Hulu users, and struck a strategic deal with Amazon to enhance ad targeting across its streaming platforms.
Additionally, the division has been preparing for the launch of a new standalone ESPN streaming service expected to go live this autumn. It also plans to introduce virtual concession stands and shoppable storefronts, allowing viewers to purchase merchandise related to the shows they’re watching—signalling a deeper integration between content and commerce.
These changes are part of a broader shift in how Disney approaches its digital entertainment business. As competition intensifies in the streaming space, Disney is working to make its platforms more personalised, commercially integrated, and data-driven.
The recent cuts to the product and technology team follow a wave of layoffs that have affected multiple Disney business units in recent months. Earlier in June 2025, Disney let go of hundreds of employees, with the bulk of those cuts hitting the entertainment and corporate financial divisions.
In early 2025, the company laid off nearly 200 employees from the ABC News Group and other entertainment networks, and in late 2024, Disney reduced its workforce by letting go of 300 corporate employees, in addition to staff reductions within ABC’s broadcasting unit.
These successive layoffs underscore the company's ongoing efforts to streamline operations while continuing to innovate in core growth areas. CEO Bob Iger, who returned to helm the company in 2022, has repeatedly emphasised the need for Disney to remain financially disciplined as it navigates a rapidly evolving media landscape.
Despite the staff reductions, the company is still placing considerable bets on the future of streaming and technology-led content distribution. Initiatives like enhanced advertising partnerships, direct-to-consumer merchandising features, and expanded sports streaming platforms suggest that Disney’s digital transformation is far from slowing down.
The company has not issued an official statement on the exact number of employees impacted in this latest round. However, the source cited by TheWrap indicated that the rebalancing was “targeted” and “strategic,” designed to allocate more resources to high-growth areas within product and technology.