Disney Begins Layoffs as Stocks, Attendance Rates Plummet Across Parks, Company

In a summer where things continue to go wrong for the House of Mouse, the company is now laying off its workforce, leading to more unfortunate news for this theme park and entertainment giant.

Credit: Becky Burkett/Disney/Walt Disney Archives/Canva

The Walt Disney Company Begins Laying off Work Force Amidst Low Attendance Rates, Stocks Plummeting

Layoffs have begun at Disney Entertainment Television (DET), impacting approximately 140 employees, or about 2% of the workforce. The most significant cuts occur at National Geographic, which has seen around 60 layoffs, representing about 13% of its staff. Other affected divisions include ABC Owned Television Stations, Freeform, and various operational sectors of Disney’s linear entertainment networks, including Unscripted, Marketing, and Publicity.

The layoffs are part of a broader effort to streamline operations and align with the company’s evolving strategy in the face of changing media consumption habits. Disney’s linear networks, particularly those not directly tied to the company’s popular streaming platforms, have been hit hardest by these cuts. The reduction in staff is part of a cost-cutting strategy that has been in the works for several months, with department heads given specific targets after a comprehensive review.

Nearly half of the affected positions are based in Burbank, home to Disney Studios, and the greater Los Angeles area, with the remaining layoffs primarily in New York and Washington, D.C., where National Geographic is headquartered. These layoffs are the latest in a series of cost-saving measures at Disney, which aims to achieve at least $7.5 billion in reductions. Pixar Animation Studios cut 14% of its staff earlier this year, following similar decreases across other Disney divisions.

Image Credit: Inside The Magic

The entertainment industry is grappling with a challenging economic environment, marked by a decline in traditional pay-TV subscriptions and a shift in advertising dollars to digital platforms. Disney CEO Bob Iger has emphasized the company’s focus on managing costs and adapting to these changes while maintaining profitability across its platforms.

The recent layoffs at Disney Entertainment Television signal a pivotal moment for The Walt Disney Company as it grapples with shifting industry dynamics and the ongoing decline in traditional media. For Disney, these cuts are part of a broader strategy to streamline operations, reduce costs, and adapt to the changing media consumption landscape, where streaming is increasingly dominant.

The layoffs, particularly in the linear networks integral to Disney’s content distribution, underscore the company’s need to prioritize its most profitable and strategically essential assets while scaling back on those that no longer align with its long-term goals. For Disney Entertainment, the reductions highlight the pressures traditional television networks face in an era where digital platforms are rapidly overtaking cable and broadcast.

Credit: Inside The Magic

The focus on consolidating operations and trimming underperforming divisions reflects a necessary shift toward efficiency and profitability. As Disney continues integrating its linear and streaming strategies, the company will likely concentrate resources on content that can drive viewership across multiple platforms, ensuring a more cohesive and financially viable media ecosystem.

This marks a challenging and uncertain time for the employees affected by these layoffs. The reductions impact those who have lost their jobs and signal potential job security shifts for remaining staff as the company continues to reassess and restructure its operations.

The changes reflect broader trends in the media industry, where traditional roles are evolving, and the emphasis is increasingly on digital skills and adaptability in a rapidly changing environment. It has been announced through other news sources that more Disney layoffs are heading to the House of Mouse soon, as the company continues to struggle with low attendance rates throughout the parks, a botched Tiana’s Bayou Adventure opening, and Disney stocks taking massive hits left and right.