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Disney Reportedly Abandons Plans for New Theme Park Amid Mass Layoffs

Disney’s ambitious theme park expansion is facing a major setback.

In September 2023, The Walt Disney Company announced plans to spend $60 billion on its Experiences division over the following decade. The investment would fund new attractions, themed lands, cruise ships, and other developments across its global portfolio.

Concept art of the new Villains Land coming to Walt Disney World's Magic Kingdom
Credit: Disney

Some of those projects are already taking shape. At Walt Disney World, construction is underway on major additions to Disney’s Hollywood Studios and Disney’s Animal Kingdom, while Magic Kingdom is preparing for Villains Land and a new Cars-inspired area.

Disneyland Resort is also planning major changes through its DisneylandForward initiative. Elsewhere, Disneyland Paris is developing an attraction inspired by The Lion King (1994), while Disney has announced plans to establish its seventh theme park resort in Abu Dhabi.

However, the company’s latest round of layoffs has raised questions about how many of its proposed projects will ultimately move forward.

On October 28, the Los Angeles Times reported that Disney was eliminating between 100 and 200 positions within its Experiences division. Many of the cuts affected Walt Disney Imagineering, the department responsible for designing and developing Disney’s theme parks and attractions.

A subsequent California filing identified 159 permanent layoffs at Imagineering’s Glendale headquarters, effective December 29. The reductions follow several other rounds of job cuts across Disney in 2026, including nearly 300 positions eliminated in early October.

The Walt Disney Company Water Tower in Burbank
Credit: Disney

Now, reports suggest that one proposed theme park has become a casualty of Disney’s changing priorities.

Disney Reportedly Shelves Plans for Entire Theme Park

According to Puck, Disney has indefinitely shelved plans to build a second theme park at Shanghai Disney Resort in China.

The publication claims that a significant number of the recently eliminated Imagineering positions were connected to the unannounced project, which had reportedly been in development behind the scenes.

Disney has never officially confirmed plans for a second Shanghai theme park, nor has it publicly announced the project’s cancellation. The reason for the reported decision remains unknown.

Shanghai Disney Resort opened in June 2016, becoming Disney’s first theme park resort in mainland China. Unlike Walt Disney World, Disneyland Resort, Tokyo Disney Resort, and Disneyland Paris, it currently operates just one theme park.

A second park would have considerably expanded the destination, potentially giving visitors another reason to extend their stays beyond a single day.

Is this leaked concept art for a Shanghai Disneyland second gate park? Looks very Epcot-like! With this being the Shanghai Disney’s 10th anniversary, many believe they’re announcing a second park later this year

 

The possibility has been discussed for years. In his 2024 memoir, Dream Chasing, former Walt Disney Imagineering president Bob Weis revealed that Imagineers had previously explored concepts for another Shanghai park.

One early proposal reportedly focused on nature, culture, and the arts, drawing comparisons to EPCOT at Walt Disney World. Disney ultimately decided against pursuing that concept at the time, concentrating instead on developing a Zootopia-themed expansion.

That project opened in December 2023, becoming the first Disney theme park land dedicated entirely to the animated franchise.

Speculation about a second park returned in 2026, particularly as Shanghai Disneyland approached its tenth anniversary.

Alleged concept art circulated online showing what appeared to be another EPCOT-inspired destination, including a spherical centerpiece resembling Spaceship Earth. The rumored project was also linked to the name Project Atlas, although Disney never authenticated the material.

Walt Disney statue in front of Enchanted Storybook Castle
Credit: Disney

In June, Forbes reported that industry insiders believed another Shanghai theme park was moving forward, with speculation suggesting it could open around 2031.

Potential themes reportedly ranged from Marvel and Avatar to an original concept, but Disney made no announcement during Shanghai Disneyland’s anniversary celebrations.

The company’s August D23 event also passed without any confirmation of a second park.

If Puck’s latest reporting is accurate, the project has now been placed on hold indefinitely. That does not necessarily mean Disney has permanently abandoned the possibility of another Shanghai theme park.

Shanghai Disneyland’s Other Expansion Projects Continue

The reported setback does not mean construction has stopped across Shanghai Disney Resort.

Disney is currently developing a ninth themed land dedicated to Spider-Man, featuring a major roller coaster and additional shopping, dining, and entertainment experiences. The expansion is being built adjacent to the resort’s popular Zootopia area.

Construction began in May 2025, and the roller coaster’s track installation was completed in June 2026. Disney subsequently revealed that ride vehicles had been installed, bringing the Marvel-themed attraction another step closer to opening.

Shanghai Disney Resort is also expanding its hotel capacity. Its third property, the 400-room Shanghai Disney Enchanted Star Hotel, is scheduled to open in December 2026, while a fourth hotel is being developed near the theme park’s entrance.

Other confirmed projects include an expansion of Disneytown’s shopping and dining district and increased capacity for Soaring Over the Horizon.

Shanghai Disneyland characters
Credit: Shanghai Disneyland

These developments follow years of growth at the resort. Shanghai Disneyland added Disney·Pixar Toy Story Land in 2018 and Zootopia in 2023, while the wider destination welcomed its 100 millionth visitor in October 2025.

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

For now, Disney has not announced any changes to its publicly confirmed Shanghai Disneyland expansion plans, and the future of the rumored second theme park remains uncertain.

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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