Disney has announced the layoffs of hundreds of workers around the world, affecting staff in key areas such as film production, television and finance.

The company confirmed that the cuts also affect its casting, content development and corporate finance departments, while marketing teams in the film and TV divisions are also affected.

The layoffs come in succession to the 2023 wave of cuts, when some 7,000 employees were removed, as part of a $5.5 billion savings plan launched by CEO Bob Eiger.

Pressure from the transition to the streaming era

Disney employs around 233,000 people worldwide, including 60,000 outside the US, and has entertainment giants such as Marvel, Hulu and ESPN in its portfolio.

The company is under pressure as more and more consumers abandon cable TV subscriptions, opting for streaming services such as Disney+. “As our industry rapidly transforms, we continue to look for ways to manage our business effectively while maintaining the creativity and innovation that our consumers value,” a spokesperson told the BBC.

Disney assures that the process was “surgical” to limit the number of affected employees and that no team will be scrapped entirely.

The company reported higher-than-expected earnings in May, with total revenue of $23.6 billion for the first quarter. This represents a 7% increase over the same period in 2024. The company said the increase was driven by new subscribers to its Disney+ streaming service.

Go woke – Go broke

However, Kathleen Kennedy’s controversial creative decisions – particularly the shift toward “woke” themes in the legendary Star Wars franchise – have cost Disney many hundreds of millions of dollars damaging the legacy of both Star Wars and Indiana Jones. In the past, it would have been unthinkable for a Star Wars release to flop, but this is exactly what has happened with several recent installments.