In a recent report from TheWrap, it was revealed that The Walt Disney Company has initiated another round of workforce reductions, specifically within its Entertainment and ESPN product and technology divisions. According to an unnamed source familiar with the situation, around 2% of the staff in these sectors have been laid off as part of a broader strategy to rebalance resources.
Despite these ongoing layoffs, Disney has reiterated its commitment to driving growth in product and technology. The company emphasized that, while streamlining its workforce, it remains focused on expanding its digital and technological advancements. This adjustment comes as Disney navigates the complexities of an ever-changing media landscape.
A Trend of Reductions at Disney
This marks the fifth round of layoffs within Disney in the past year. However, sources close to the matter indicate that this round of cuts is not directly linked to the earlier rounds. The decision appears to be part of a broader plan to optimize resources across Disney’s divisions and maintain long-term viability in an increasingly competitive market.
The product and technology division, overseen by Adam Smith—who joined Disney in 2024—has been a central area of focus for the company’s restructuring. Smith’s team has worked on various initiatives to improve Disney’s streaming platforms, including Disney+ and Hulu, with a particular emphasis on enhancing user experience and expanding subscriber perks. Notably, Disney has implemented stricter measures on password sharing for Disney+, rolled out new benefits for subscribers, and made significant strides in improving ad targeting in collaboration with Amazon.
Looking to the Future: Disney’s Streaming Strategy
Alongside the workforce reductions, Disney has also unveiled several key strategies to enhance its streaming offerings. One of the more notable developments includes the introduction of virtual “concessions stands” and “storefronts” within Disney’s streaming platforms, which allow viewers to purchase products related to the content they’re watching. This integration aims to deepen the viewer experience and increase engagement with the content.
Moreover, Disney is set to launch a new ESPN streaming service later this year, marking a pivotal moment in the company’s continued push into the digital sports streaming space. These moves highlight Disney’s ongoing efforts to remain a key player in the highly competitive streaming industry, even as it faces pressure to streamline its operations.
A History of Workforce Adjustments
This round of layoffs follows a pattern seen over the past few months at Disney. Earlier in the year, the company laid off hundreds of employees, primarily from its entertainment and corporate financial sectors. In early 2025, fewer than 200 jobs were cut from ABC News Group and Disney’s entertainment networks. Last fall, Disney also made significant cuts to corporate staff, including employees at ABC.
Despite the restructuring, Disney’s leadership remains focused on driving innovation within its entertainment and product divisions. As the company adapts to a rapidly shifting media environment, industry insiders and Disney fans alike will be closely watching to see how these changes impact the company’s long-term trajectory and its ability to compete in the evolving digital landscape.
