Disney is preparing to cut up to 1,000 jobs as the entertainment giant faces growing pressure from a shrinking media industry and changing audience habits. The layoffs are expected to hit the marketing department hardest, Variety reported, marking another sign of instability in Hollywood’s once-thriving ecosystem.
The job cuts come as Josh D’Amaro steps in to replace outgoing CEO Bob Iger, taking charge after years leading Disney’s Parks and Experiences division. D’Amaro played a major role in reshaping the theme park business, but now must confront tougher global economics and reduced consumer spending. Disney’s workforce stands at roughly 231,000 employees, making this reduction significant as the company adjusts to slower growth and escalating costs.
The announcement arrived just one day after Sony Pictures Entertainment confirmed its own layoffs. Sources familiar with Sony’s internal plans told reporters the reductions are “targeted and strategic” rather than purely “cost driven.” Sony’s restructuring stretches across television, film, anime, gaming, and digital content as the studio refocuses on areas with long-term revenue potential. Executives said the goal was to reorganize the company “for the future” and to maximize growth despite tightening budgets.
Together, the cuts at Disney and Sony reveal a pattern of contraction across the entertainment industry following years of inflated spending and pandemic-era disruption. Filmmaking jobs in Los Angeles County have fallen 30 percent over the past two years. At the end of 2024, only 100,000 motion picture jobs remained, compared to 142,000 before the downturn. Theater attendance dropped nearly 48 percent in the same period, signaling that audiences have not returned in the numbers studios once expected.
The Wall Street Journal warned this month that Hollywood’s decline could rival Detroit’s auto collapse. Analysts described the ongoing retrenchment as a “nightmare scenario playing out” in real time, with studio towns losing momentum and once-dependable creative hubs fading into uncertainty. With more layoffs looming and billions lost to shifting consumer habits, the entertainment capital faces its toughest crossroads in decades.
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