The Walt Disney Co. laid off nearly 300 workers this week at its Burbank headquarters, primarily affecting its human resources and technology divisions. This move comes as the entertainment giant also offered early retirement packages to older workers, a voluntary separation program that could see an undetermined number of executives depart later this year. These actions reflect a broader industry consolidation that continues to reshape the Southern California entertainment landscape.
The shifts are occurring as Josh D’Amaro, who took over as CEO in March from Bob Iger, works to implement a "One Disney" approach. This strategy aims to break down corporate silos that developed after large acquisitions, notably Disney's 2019 takeover of much of 21st Century Fox. For the past year, the company has also been focusing on making Disney+ its central streaming hub, which has led to a diminishing role for the Hulu service and brand, nearly two decades after its launch.
Burbank employees are reportedly bracing for further changes. According to the Wall Street Journal, many expect a significant restructuring of the television division early next year, potentially leading to hundreds more layoffs. Additionally, an internal memo from Disney Chief Legal Officer Horacio Gutierrez indicated that Disney’s legal government affairs department is also slated for downsizing. A Disney spokesperson declined to comment on these developments.
These organizational adjustments happen even as Walt Disney Co. saw record quarterly revenue from its theme parks division. However, its overall segment operating income was dragged down by factors like its Fubo deal and a YouTube carriage dispute.
The wider industry context is one of significant turmoil. Traditional studios and TV networks have shed tens of thousands of workers in recent years. This follows what many refer to as the "streaming bubble burst" and the twin labor strikes that paused projects across Hollywood. Production workers in Los Angeles have faced a particular challenge, as generous tax subsidies in other states and countries have increasingly drawn productions away from the region. A bipartisan group of Congressional leaders is currently advocating for a 20% federal tax credit for film and TV production, hoping to reverse this trend and bring filming back to the U.S.
Disney President Dana Walden acknowledged this industry turmoil during an appearance at Bloomberg News’ Screentime media conference in Hollywood. She explained that restructurings are necessary as companies adapt to evolving consumption patterns, which have eroded the once-lucrative economics of traditional television.
Walden stated that "There is a need to constantly evaluate how you’re structured." She described the process as "extremely painful," noting the departure of long-term colleagues. However, she characterized Disney’s voluntary retirement program as "generous," designed to offer "long-tenured executives agency and the opportunity to make their own decisions around whether the timing was right to leave."
Walden also suggested that Disney’s cuts would be more modest compared to others in the industry. This comes as Warner Bros. Discovery workers, for example, are reportedly anxious about David Ellison’s planned takeover of their company. That merger, which will see the combined entity named Skydance, is expected to involve hundreds of layoffs as part of a $6 billion cost-cutting effort promised to investors, leaving the new company with over $80 billion in debt. Ellison recently settled a lawsuit with state attorneys general that had delayed the merger.
Despite these internal and industry-wide shifts, Disney CEO Josh D’Amaro recently thanked "super fans" at the D23 fan event in a star-studded presentation of upcoming films and TV shows. Dana Walden reiterated the company's forward-looking stance, adding, "This evolution, it will never stop." She emphasized that with technology impacting their business, companies "must survive, and thrive and grow," affirming that Disney intends to do just that.