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June 25.2025
2 Minutes Read

Disney's Layoffs in Product and Technology: What It Means for the Future of Streaming

D23 stage presentation with speaker under starry lights, Disney layoffs product technology.

Disney's Strategic Layoffs: A Shift Toward Innovation

In recent weeks, Disney has faced significant changes as it begins to adapt to the evolving landscape of entertainment. Following a prior round of layoffs, the company has now let go of staff in its product and technology divisions. These layoffs, reportedly affecting less than 2% of the group, aim to rebalance resources within the organization under the leadership of Adam Smith, who joined Disney from YouTube.

This decision comes amid a broader trend within the industry, where linear TV viewership has declined and streaming platforms like Disney+ and Hulu strive to boost their technological capabilities. Interestingly, even with these layoffs, Disney continues to hire in the same areas, indicating a commitment to innovation while streamlining operations.

Understanding the Context of Disney's Cuts

These layoffs are part of a larger strategic shift instituted by CEO Bob Iger since his return to the company in late 2022. Iger previously announced the need to cut 7,000 jobs to better align with the evolving demands in video consumption. As viewership migrates towards streaming, organizations like Disney must navigate this transition while grappling with the financial challenges that accompany it.

The Future of Disney's Streaming Services

With Smith at the helm of product and technology, Disney is poised to enhance its platforms. The launch of a flagship ESPN streaming product later this year exemplifies the company’s intent to lead in technology for its streaming services. However, as Disney refines its workforce, it must balance the need for skilled professionals while adapting to the competitive entertainment market.

What This Means for Employees and Fans

For current employees, these changes may lead to feelings of uncertainty and anxiety. Layoffs can disrupt teams, affect morale, and lead to a challenging work environment. However, for fans of Disney's offerings, the dedication to enhancing product technology could lead to improved viewing experiences in the near future. As the company pivots, it is crucial to observe how these strategic decisions impact both the workforce and the audience.

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