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Disney Reportedly Abandons Plans for New Theme Park Amid Mass Layoffs

Disney's next major theme park may never see the light of day.

Over the past 25 years, Disney has transformed several of its destinations by introducing second theme parks. Disney California Adventure opened beside Disneyland Park in 2001, the same year Tokyo DisneySea debuted in Japan. Disneyland Paris followed with Walt Disney Studios Park in 2002.

These additions have helped transform Disney's resorts into multi-day vacation destinations, giving guests more attractions, entertainment, and dining options without requiring them to travel elsewhere.

The company has continued pursuing this strategy on an even larger scale. In 2023, Disney announced plans to invest approximately $60 billion in its Experiences division over the following decade, with much of that money earmarked for expanding its existing destinations.

Judy and Nick from Zootopia dressed in halloween costumes at Shanghai Disneyland Resort
Credit: Disney

Projects currently underway include new Monsters, Inc. (2001) attractions at Disney's Hollywood Studios, an Encanto (2021) ride at Disney's Animal Kingdom, and a Lion King (1994) land at Disneyland Paris. Disney is also developing an entirely new theme park resort in Abu Dhabi.

However, Disney's expansion plans are unfolding alongside significant changes to its workforce.

On October 28, the Los Angeles Times reported that the company was laying off between 100 and 200 employees in its Experiences division. The cuts primarily affected Walt Disney Imagineering, which oversees the design and development of Disney's theme parks, attractions, and resorts.

California employment records subsequently identified 159 permanent layoffs at Disney's Glendale headquarters, effective December 29.

The cuts followed another round of nearly 300 layoffs in early October, which primarily affected the company's human resources and technology departments.

Now, new reports suggest that an entire theme park project has been put on hold indefinitely.

Disney Reportedly Cancels Plans for Second Theme Park

The project in question is a rumored second theme park at Shanghai Disney Resort, which has operated just one park since opening in June 2016.

A 'Dumbo' parade float passes by guests at Shanghai Disneyland
Credit: Taha, Unsplash

According to Puck, Disney has indefinitely shelved the proposed development, with a significant portion of the recent Imagineering layoffs reportedly affecting employees who had been working on the project.

Although Disney has never formally announced plans for another Shanghai theme park, the possibility has been discussed for several years.

In his 2024 memoir, Dream Chasing, former Walt Disney Imagineering president Bob Weis revealed that the company had considered building a second park during the resort's early development.

The original concept reportedly centered on nature, culture, and the arts, with similarities to EPCOT at Walt Disney World. However, Disney ultimately decided that the timing was wrong and shifted its attention toward expanding its existing Shanghai Disneyland park.

That decision eventually resulted in the resort's Zootopia (2016) land, which opened in December 2023. The area features the trackless dark ride Zootopia: Hot Pursuit, along with themed restaurants, shops, and character experiences.

Rumors about a second theme park resurfaced in March 2026, when alleged concept art circulated on social media.

The images appeared to depict a futuristic park featuring a large sphere resembling EPCOT's Spaceship Earth. The project was also linked to the rumored codename Project Atlas, although Disney never confirmed the images or the name.

 

Speculation increased ahead of Shanghai Disneyland's tenth anniversary on June 16. Some reports suggested Disney was preparing to announce a second park as part of the celebrations, potentially targeting an opening around 2031.

In June, Forbes reported that industry insiders believed the development was moving forward. Several possible themes were discussed, including Marvel and Avatar (2009), but none received official confirmation.

Ultimately, the anniversary passed without an announcement. Disney also remained silent on the subject during its D23 event in August.

The latest report suggests the project has since lost its place among Disney's immediate priorities. However, the reasons behind the reported decision remain unclear, as does the possibility of Disney revisiting the plans in the future.

What's Next for Shanghai Disneyland?

Despite reports of the second park being shelved, Disney is continuing to invest in its existing Shanghai destination.

Shanghai Disneyland has undergone several major expansions since opening, beginning with Disney·Pixar Toy Story Land in 2018 and followed by Zootopia in 2023. The resort welcomed its 100 millionth visitor in October 2025.

Its next major addition will be a ninth themed land inspired by Spider-Man, featuring a large-scale roller coaster and additional Marvel-themed experiences.

Construction began in May 2025, with Disney completing the roller coaster's track installation in June 2026. By August, the attraction's first ride vehicles had been installed, although an opening date has not yet been announced.

The resort is also preparing to open its third hotel. On October 30, Disney confirmed that Shanghai Disney Enchanted Star Hotel will welcome guests from December 16, 2026.

The nine-story property will feature 400 rooms overlooking Wishing Star Lake and Shanghai Disneyland, with an architectural design inspired by early 20th-century Shanghai.

A fourth hotel is also being developed near the theme park entrance, alongside an expansion of Disneytown's shopping, dining, and entertainment facilities.

Meanwhile, Disney is increasing capacity on Soaring Over the Horizon, one of Shanghai Disneyland's most popular attractions.

None of these confirmed developments has been identified as canceled in the latest reporting.

Disney has not publicly addressed Puck's claims about the second theme park, meaning the reported cancellation remains unconfirmed. For now, its announced Shanghai projects are continuing, even as the future of a second park hangs in the balance.

Do you think Disney should build a second theme park at Shanghai Disney Resort?

Chloe James

Chloë is a theme park addict and self-proclaimed novelty hunter. She's obsessed with all things Star Wars, loves roller coasters (but hates Pixar Pal-A-Round), and lives for Disney's next Muppets project.

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