The Walt Disney Company confirmed this week that it is proceeding with a broad workforce reduction as part of a $5.095 billion cost-cutting plan announced earlier in the year. The layoff move targets roughly 7,000 roles, representing about 3 percent of the global staff, and is designed to align the company’s operations with its strategic priorities and streamline decision-making across divisions.
By the end of March, Disney’s leadership confirmed to employees that the reductions would commence in the near term. The company has signaled that the second wave of job cuts would follow soon after the initial actions, with a cumulative total expected to reach around 4,000 roles laid off by the outset of the second phase.
Company officials previously indicated that communications about the layoffs would extend to a second group of workers during April, with the final waves of contractor and employee terminations anticipated to occur in early summer. The leadership underscored that these steps were taken to create a more efficient, coordinated, and streamlined operation across the organization, reflecting a commitment to cost discipline and long-term competitiveness.
At the time the plan was announced, executives framed the decision as a difficult but necessary move to underpin Disney’s strategic reorganization and to accelerate the company’s ability to invest in core growth areas and essential infrastructure. The remarks underscored the aim to preserve critical capabilities while reducing overhead to support a leaner, more agile enterprise.
Lost subscribers
Discussions around the layoffs aligned with Disney’s quarterly results, which highlighted a decline in subscribers for the Disney+ streaming service. The company reported a net loss in subscribers during the period, a factor that contributed to the broader restructuring discussions and strategic reassessment in streaming and other segments.
In the wake of the initial rounds of cuts, reports indicated that one affected unit included a team focused on metaverse initiatives, which reportedly consisted of about 50 workers. The unit’s activities were winding down, a decision noted by observers and reported by major business outlets at the time. These actions were part of a wider effort to reassess non-core projects and reallocate resources to higher-priority initiatives. The reporting on these steps appeared in coverage from prominent financial press during the period in question.