Walt Disney is once again sharpening its pencil and trimming costs, announcing another round of layoffs that will affect several hundred employees across its global operations. The latest cuts target teams in film and TV marketing, publicity, casting, development, and corporate finance.

This move reflects the company’s ongoing efforts to reshape itself amid shifting tides in the media industry, as traditional cable audiences continue to drift towards streaming platforms.

This isn’t the first swing of the axe. Back in 2023, Disney let go of 7,000 employees as part of a sweeping initiative led by chief executive Bob Iger to shave $5.5 billion off its expenses.

That wave of cuts aimed to rightsize the business in the face of headwinds from declining linear TV viewership and increased competition in the streaming arena.

In March this year, the company also reduced headcount by nearly 6% in the ABC News Group and Disney Entertainment Networks – fewer than 200 roles in total. Now, with this latest announcement, Disney continues to tighten its belt while reaffirming its commitment to innovation.

“As our industry transforms at a rapid pace, we continue to evaluate ways to efficiently manage our businesses while fuelling the state-of-the-art creativity and innovation that consumers value and expect from Disney,” a company spokesperson told the BBC.

They added that the latest workforce reductions had been “surgical” and no entire teams would be shuttered.

Disney’s workforce currently numbers around 233,000, with just over 60,000 of those employees based outside the US. Despite the job losses, the company remains a behemoth in the entertainment sector, owning blockbuster brands such as Marvel, Hulu and ESPN.

Signs of strength despite setbacks

While the layoff news may cast a shadow, Disney’s latest earnings report from May tells a more upbeat story. The entertainment giant posted revenues of $23.6 billion for the first three months of the year – a 7% increase compared to the same quarter in 2024. This performance exceeded Wall Street forecasts, buoyed by a surge in Disney+ subscribers and robust returns from its theme parks business.

Disney shares have climbed 21% since the earnings report, though they dipped slightly by 0.3% to $112.62 in afternoon trading on Monday.

The streaming arm, Disney+, remains central to the company’s transformation playbook. As more households cut the cord and opt for digital entertainment, Disney is doubling down on its streaming bets. This strategic pivot has become a lifeline in an industry where legacy cable models are fast losing ground.

Box office highs and lows

Disney has continued to push out a steady stream of cinematic content. Among its recent offerings are “Captain America: Brave New World” and a live-action adaptation of “Snow White”. However, not all releases have been met with applause. The much-anticipated “Snow White” remake fell short of expectations at the box office, dampened by lukewarm reviews.

On a more positive note, “Lilo & Stitch” has proven to be a smash hit. Released over the Memorial Day holiday weekend in the US, the animated feature has broken box office records and generated more than $610 million in global ticket sales, according to Box Office Mojo.

This rollercoaster of performance across its film slate mirrors the broader volatility in the entertainment landscape, where hits and misses can shape quarterly fortunes. But even with a few misfires, Disney’s portfolio strength gives it plenty of room to manoeuvre.

A business in transition

The ongoing restructuring underscores Disney’s strategy to be both leaner and more agile. With no plans to eliminate entire divisions, the company is signalling that it wants to streamline without hollowing out the creative engine that powers its global brand.

The challenge now lies in cutting costs while nurturing the imagination and innovation that audiences around the world expect.

For business and HR leaders, Disney’s approach serves as a case study in managing transformation at scale. Faced with changing consumer habits and fierce digital competition, the company is choosing to recalibrate.