Disney+ Is Bleeding Money: Massive Layoffs and Budget Cuts Expose Streaming Crisis

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In just under 24 hours after I highlighted that Andor creator Tony Gilroy shared Disney’s comment “streaming is dead” and budget cuts, it has been announced and confirmed that the company has let go of hundreds of employees from their TV and movie departments.

As I’ve learned from Deadline, a significant wave of changes seems to have swept through Disney Entertainment, particularly affecting their television and film marketing units, publicity, casting, and development teams on a global scale. This reorganization is said to affect several hundreds of dedicated employees worldwide.

Layoffs Hit TV, Film, and Corporate Offices

Disney’s television development and casting ranks were gutted Monday. Among the names out:

  • Eric Souliere, VP of Casting for 20th Television (behind 9-1-1 and AHS)
  • Tony Tompson, VP of Content Development at Hulu Originals
  • Additional exits include executives from ABC and Hulu’s drama teams

In simpler terms, as some employees’ contracts ended or moved to different positions, it’s evident that Disney is reducing its workforce in areas not related to theme parks and sports. During their annual shareholders meeting this spring, Bob Iger indicated that the company would primarily create new jobs associated with Disney-themed experiences, such as theme parks.

The Streaming Collapse Continues

Over the past ten months, there have been four significant rounds of job cuts, starting with ABC Signature’s closure, followed by scripted teams mergers, substantial layoffs at NatGeo, and more at FX. Despite initial pledges for $7.5 billion in savings last year, CEO Bob Iger continues to implement further reductions.

Initially hailed as Disney’s promising venture, streaming services have become a financial burden for the company. Despite reporting a rare profit in the recent quarter, Disney continues to reduce its workforce associated with Disney+, Hulu, and traditional television broadcasting.

Last year, Iger confirmed that streaming lost $4 billion for the company.

In a highly competitive streaming market, our approach became overly ambitious, attempting to narrate numerous stories. This ambition resulted in investing excessively before seeing potential profits. Ultimately, this aggressive strategy contributed to a significant financial loss of approximately $4 billion, as stated by Iger at a recent conference.

Marvel and Star Wars in the Firing Line?

The sequence of the job cuts, occurring just after Gilroy stated that there was no funding left for performances, leaves one wondering about the upcoming situation.

The progress of Ahsoka‘s Season 2 remains, but both The Acolyte and Skeleton Crew have faced disappointments. Meanwhile, on the Marvel front, shows such as Ironheart and Wonder Man are appearing to be significant letdowns, mirroring the large failure of Daredevil: Born Again.

You can actually already make the case that Disney has made cuts to both Marvel and Star Wars.

Previously discussed, it’s clear that the budgets have been significantly reduced for series such as Echo, Agatha, and Daredevil, including its upcoming season 2 – Daredevil: Born Again. This follows Marvel and Feige investing massive amounts in each production, like She-Hulk and Secret Invasion, with no significant viewership for Ms. Marvel either.

Star Wars isn’t an exception to this rule. Investing hundreds of millions on “The Acolyte” didn’t seem to pay off, as it wasn’t well-received. Similarly, “Skeleton Crew” failed to attract viewers. Unfortunately, the production of “The Mandalorian” Season 3 was also affected negatively.

Spending hundreds of millions on “The Acolyte” didn’t work out because not many people watched it. The same happened with “Skeleton Crew,” and it looks like the production of “The Mandalorian” Season 3 was also affected by this trend.

Due to the numerous setbacks in Marvel and Star Wars projects, Iger announced his intention to scale back involvement in both franchises, and this reduction in focus is clearly visible now.

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2025-06-03 00:01