The Walt Disney Company has initiated a second round of layoffs, affecting several hundred employees across its film, television, and corporate finance divisions. This action is part of a broader cost-reduction strategy announced by CEO Bob Iger, aimed at streamlining operations and positioning the company for long-term growth.

The job cuts are part of a previously disclosed plan to eliminate approximately 7,000 positions, representing about 3% of Disney’s global workforce. The initiative is designed to reduce costs by $5.5 billion, with a focus on operational efficiency and reallocating resources toward areas of strategic importance, including streaming and core franchise development.

This latest round of layoffs is not expected to impact hourly frontline workers at Disney’s parks and resorts, and no entire teams are being dissolved. The company is maintaining its investment in key content areas and continuing work on major projects.

A third and final round of layoffs is anticipated to take place before the end of the summer to meet the targeted workforce reduction.

Following the announcement, Disney’s stock experienced a modest decline of 0.3% but has since recovered slightly, trading at $113.64 as of June 4, 2025. The company’s latest earnings report in May exceeded analyst expectations, driven by strong performance in both streaming services and theme parks.

Disney’s restructuring reflects broader shifts in the entertainment industry as traditional media companies adapt to evolving consumer behaviors and a digital-first market.