The Burbank entertainment conglomerate announced in February that it would eliminate 7,000 jobs as part of an effort to save $5.5 billion in costs and make its money-losing streaming business profitable.

The decision by The Walt Disney Company to cut approximately 7,000 jobs, which began in early 2023 and continued through subsequent restructuring phases, was a strategic move to achieve $5.5 billion in cost savings. Under the leadership of returning CEO Bob Iger, the company aimed to streamline operations and return to a more decentralized management structure. A primary driver for these cuts was the need to make Disney’s streaming business, specifically Disney+, profitable after years of significant investment and heavy losses. The media landscape shifted from a "growth at all costs" mentality to a focus on profitability and cash flow. The layoffs affected various divisions, including Disney Entertainment, Disney Parks, Experiences and Products, and corporate roles. By reducing headcount and marketing spend, Disney sought to strengthen its balance sheet and restore dividend payments to shareholders. This restructuring was part of a larger plan to refocus on core creative brands and ensure the company remains competitive in a rapidly evolving digital entertainment market where traditional cable TV revenue is also declining.