Devastating Layoffs Hit the Walt Disney Company

In a recent report by TheWrap, it has been revealed that The Walt Disney Company is once again reducing its workforce, this time within its Entertainment and ESPN product and technology divisions. According to an unnamed source familiar with the matter, approximately 2% of the staff in these divisions has been let go as part of a broader rebalancing of resources.

Despite the layoffs, Disney has emphasized that this move will not slow down its commitment to investing in product and technology growth. The company has been taking steps to streamline operations and adjust to the evolving media landscape, even as it continues to expand in other areas.

A Continuing Trend at Disney

This round of layoffs marks the fifth such occurrence in just a year at Disney. However, sources suggest that these cuts are distinct from previous ones, as they are not directly tied to any of the earlier rounds of job reductions. The decision is seen as part of Disney’s broader effort to optimize resources across its divisions, ensuring long-term success in the face of a rapidly changing entertainment environment.

Led by Adam Smith, who joined Disney in 2024, the product and technology division has undergone significant changes under his leadership. Smith’s team has been actively working on enhancing Disney’s streaming platforms, particularly Disney+ and Hulu, with a focus on improving user experience and expanding subscriber perks. Notably, Disney has recently cracked down on password sharing for its streaming services, introduced new benefits for subscribers, and made strides in improving ad targeting through a new partnership with Amazon.

Big Moves for Disney Streaming

Disney has also been exploring new ways to enhance the viewing experience. One of the latest initiatives includes the introduction of virtual “concessions stands” and “storefronts” within its streaming platforms, allowing viewers to purchase products directly related to the shows they are watching. Additionally, Disney is gearing up for the launch of a new ESPN streaming service later this fall, a move that marks the company’s continued push into the digital and sports streaming space.

While these ongoing restructuring efforts are reshaping Disney’s internal operations, the company’s strategic goals remain focused on growth and innovation, particularly in the product and technology sectors.

A History of Workforce Reductions

This wave of job cuts follows a larger trend of layoffs at Disney. Just earlier this month, the company laid off hundreds of employees from its entertainment and corporate financial divisions. Back in early 2025, under 200 employees from ABC News Group and its entertainment networks were also let go. This followed a series of cuts last fall that saw hundreds of corporate employees and ABC staff members losing their jobs.

As Disney continues to adapt to the changing media landscape, the company’s commitment to innovation and product development remains a central focus, despite the ongoing workforce reductions. As the year progresses, Disney fans and industry observers alike will be keeping a close eye on how these changes will affect the company’s future growth and strategic direction.