Walt Disney Co. is once again reducing its workforce, cutting several hundred roles across its film, television, and corporate finance units, according to a report by Reuters citing a source familiar with the matter. This latest move comes as the entertainment giant continues to recalibrate its operations to stay competitive in a rapidly evolving media landscape dominated by digital and streaming platforms.

The layoffs affect a wide range of global teams, including those working in film and TV marketing, television publicity, casting, and content development. These cuts are part of Disney's ongoing transformation efforts, aimed at streamlining operations and shifting resources to areas of higher growth and profitability.

In 2023, Disney undertook a significant restructuring, slashing 7,000 jobs with the goal of saving $5.5 billion in costs. That sweeping reorganisation was initiated under CEO Bob Iger’s renewed leadership as the company sought to rebalance its sprawling entertainment empire. Earlier this year, in March, Disney also laid off fewer than 200 employees — approximately 6% of staff — within its ABC News Group and Disney Entertainment Networks division.

Disney, like many of its industry peers, is contending with the decline of traditional cable television audiences and the intense competition among streaming platforms. As viewers continue migrating to on-demand digital content, legacy entertainment firms have been forced to adapt quickly or risk obsolescence.

Despite these internal challenges, the company has recently shown strong financial performance. Disney’s most recent earnings report in May 2025 exceeded Wall Street expectations, buoyed by a better-than-expected performance of its Disney+ streaming service and solid returns from its theme park division. The success of these segments offered a temporary reprieve from ongoing industry headwinds and gave investors a renewed sense of optimism.

Following the upbeat earnings report, Disney shares surged and have climbed 21% in recent weeks. However, on the day the news of the layoffs broke, Disney shares were down slightly by 0.3%, trading at $112.62 in Monday afternoon trading.