The progressive Hollywood giant is grappling with soaring costs and box-office disappointments
Disney is preparing to slash thousands of jobs and cut costs by as much as 20% in parts of its business, Bloomberg reported on Tuesday, as the entertainment giant struggles with box-office disappointments and mounting criticism of its “woke” agenda.
The cuts come amid a growing backlash against Disney’s Marvel franchise, with conservative audiences accusing the studio of prioritizing diversity, equity, and inclusion (DEI) messaging over storytelling after years of blockbuster success.
The layoffs could affect the company’s theme parks, television networks, and film studios, Bloomberg reported, citing people familiar with the matter. CEO Josh D’Amaro reportedly plans to reinvest part of the savings into programming, technology, theme parks, and cruise ships.
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The latest cost-cutting drive follows years of restructuring at Disney, which employed approximately 231,000 people worldwide at the end of fiscal year 2025. The company has nevertheless forecast adjusted earnings-per-share growth of around 12% for the current fiscal year, or 16% when accounting for an additional reporting week.
Disney has faced mounting pressure over costly disappointments across its Marvel and Star Wars franchises, which it acquired in 2009 and 2012, respectively.
Following the success of ‘Avengers: Endgame’ (2019), Marvel has struggled to replicate the commercial appeal of its original superhero lineup. Some critics have dubbed the franchise the ‘M-She-U’, accusing Disney of pushing a ‘woke’ agenda through its increasingly female-prominent productions.
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‘The Marvels’ (2023) became one of the studio’s most expensive disappointments, grossing just $206 million worldwide against an estimated $270 million production budget, excluding marketing and distribution expenses.
Lucasfilm has faced similar difficulties. Its Star Wars series ‘The Acolyte’ (2024), which reportedly cost around $230 million to produce, was canceled after a single season. The franchise’s return to cinemas with ‘The Mandalorian and Grogu’ (2026) also fell short of box-office expectations, according to D’Amaro.
Former Disney CEO Bob Iger acknowledged the company’s creative and commercial challenges in 2024, pledging to prioritize quality over quantity after years of aggressive expansion into streaming and franchise spin-offs.