The entertainment industry, coming off a tumultuous period marked by the pandemic and strikes, had once clung to a hopeful mantra: “survive ’til ’25.”
However, as 2024 unfolds, a new sentiment has emerged: “exist ’til ’26.”
This shift encapsulates the growing anxiety within Hollywood, as industry professionals face an ongoing downturn in employment and production opportunities.
Recent announcements from major media players, including Walt Disney Co., Warner Bros. Discovery, and Paramount Global, have heralded more layoffs, signaling that recovery may still be far off.
Disney has eliminated several hundred jobs in both the U.S. and international markets, while Warner Bros. and Paramount have also made significant cuts to their workforces.
These layoffs indicate a continued struggle for the industry as it deals with the lasting impacts of the COVID-19 pandemic and the dual writers’ and actors’ strikes that shook 2023.
Moreover, the traditional media landscape is evolving rapidly, with declining viewership in broadcast television driving studios to pivot their resources toward streaming platforms.
Despite previous optimism that emerged towards the end of 2023, the anticipated recovery seems to have stalled.
J. Christopher Hamilton, a professor and entertainment attorney at Syracuse University, remarked on the current situation, highlighting the industry’s shift as it seeks to navigate financial pressures amid a global economic landscape rife with uncertainty.
“There’s a squeezing of our ecosystem in Hollywood,” Hamilton stated, alluding to the need for companies to find a sustainable operational model.
The optimism that greeted many in the industry at the close of 2023 has dulled.
As Hamilton noted, the reality is that many conversations now focus on fear and uncertainty, with countless industry professionals expressing concerns over job security and the viability of their projects.
U.S.-made television shows are now forced to compete heavily against local content, further complicating the landscape.
Hamilton described the current environment for content creation and production as grim, stating that the fear of job loss has led to a reluctance to take risks.
Stephen Galloway, dean of Chapman’s Dodge College of Film and Media Arts, argued that the challenges facing the industry are not fleeting but rather indicative of long-term structural issues.
He noted that while Hollywood has retrenched, the impending shake-up could extend far into the future.
A key factor contributing to the industry’s struggle is the decline of linear television—a shared challenge among all studios.
Despite its profitability, traditional broadcast TV has seen a decrease in viewership, forcing companies to manage costs carefully.
In response to this shift, Disney’s layoffs impacted numerous divisions including film and television marketing, publicity, and corporate financial operations.
Warner Bros. has made cuts primarily within its cable television channels, while Paramount has acknowledged in employee communications the need for layoffs amid ongoing linear declines.
Some media companies have begun divesting their traditional television assets, anticipating continued challenges with cable networks.
Lionsgate was one of the first to act, separating its film and TV studio business from its pay cable unit Starz.
Following suit, Comcast Corp. announced plans to spin off its cable channels into a new entity.
Warner Bros. also intends to bifurcate into two publicly traded companies—one dedicated to streaming and studios and another focused on cable networks.
This separation is seen as an acknowledgment that the industry’s original vision for competition in the streaming wars has not come to fruition, according to Peter Murrieta, a writer and educational leader.
He pointed to Netflix’s ongoing dominance in the streaming space as a crucial factor prompting studios to reevaluate their strategies.
The sense of oversaturation in show production, coupled with the need to pull back, highlights the ongoing reckoning the industry faces.
Disney’s Chief Executive Bob Iger has publicly acknowledged that the company overextended itself during the streaming wars, leading to a reassessment and focus on profitability over quantity.
As part of this strategy, Disney has begun seeking new talent in critical areas such as software engineering, indicating a pivot in operational priorities.
The wider economic landscape adds another layer of complexity for Hollywood.
In addition to long-standing concerns regarding traditional TV and AI influences, economic fluctuations driven by events such as President Donald Trump’s tariffs have shaken investor confidence and created an unpredictable atmosphere.
Galloway expressed that a pervasive fear exists among industry professionals—fearing losses in both job security and earnings.
While such concerns are valid, he believes the level of anxiety is somewhat overstated, viewing the situation as a necessary retrenchment following a period of phenomenal growth.
The entertainment sector is not alone in facing job threats due to technological advancement, with industries across the board seeing layoffs fueled by investment in AI after pandemic hiring transactions.
Major tech companies like Meta and Google have also engaged in job cuts this year, reflecting a broader trend towards optimization post-hiring surges.
Nonetheless, Hollywood’s cyclical nature suggests that from this tumult, new opportunities will arise.
As shifts unfold, there is a growing need for skilled talent in emerging areas like virtual production and AI adaptation.
Despite layoffs, the necessity for producers to manage content projects means that opportunities still exist for those within the industry, according to Susan Sprung, CEO of the Producers Guild of America.
According to Sprung, the focus on quality programming remains strong, even amid staff reductions.
While today’s environment is undoubtedly challenging, those within the entertainment sector are known for their resourcefulness and determination.
Murrieta maintains that even as difficulties persist, there remains room for optimism.
The current struggles may lead to future innovations, underscoring Hollywood’s resilience and its capacity for renewal.
image source from：https://www.latimes.com/entertainment-arts/business/story/2025-06-15/why-hollywood-studios-are-still-downsizing
