Disney Shutters Entire Home Entertainment Division

Layoffs come as Disney shifts focus to streaming amid declining disc sales.

Apr. 16, 2026 at 1:23pm

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An abstract close-up image of shattered Blu-ray discs and cracked 4K Ultra HD cases, captured in dramatic high-contrast studio lighting to create a sense of fading physical media glamour.The collapse of Disney's once-thriving home entertainment business reflects the entertainment industry's broader shift away from physical media.Burbank Today

The Walt Disney Company has laid off its entire home entertainment team, putting the future of Disney's DVD, Blu-ray, 4K Ultra HD, and collectible Steelbook releases in doubt. The cuts are part of a broader restructuring under new CEO Josh D'Amaro that aims to streamline operations and adapt to the fast-moving pace of the entertainment industry.

Why it matters

Disney's home entertainment division has been a crucial part of the company's business for decades, pioneering the sell-through model for home video and generating billions in revenue from disc sales. However, the rise of streaming has decimated the physical media market, forcing Disney to reevaluate its priorities and workforce.

The details

The layoffs impacted every member of Disney's home entertainment team, with one veteran executive describing being 'in a bit of shock' over the cuts. The move is part of a broader restructuring under new CEO Josh D'Amaro, who cited the 'fast-moving pace' of the industry and the need to 'foster a more agile and technologically-enabled workforce' as reasons for the layoffs.

  • The layoffs were announced on Tuesday, April 16, 2026.
  • Disney's home entertainment division has been a core part of the company's business since 1980.

The players

Josh D'Amaro

The new CEO of The Walt Disney Company, who is overseeing a major restructuring that includes layoffs across the organization.

Bill Mechanic

The former head of Disney's home video division, who pioneered the company's successful 'sellthrough' strategy for home video releases in the 1980s and 1990s.

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What they’re saying

“Even before the leadership transition in March, we have looked at ways in which we can streamline our operations in various parts of the company to ensure we deliver the world-class creativity and innovation our fans value and expect.... Given the fast-moving pace of our industries, this requires us to constantly assess how to foster a more agile and technologically-enabled workforce.... As a result, we will be eliminating roles in some parts of the company..”

— Josh D'Amaro, CEO, The Walt Disney Company

What’s next

Disney has not provided details on the future of its home entertainment business or whether any of the laid-off employees will be offered other roles within the company.

The takeaway

Disney's decision to shutter its entire home entertainment division underscores the seismic shift in the entertainment industry, as streaming has decimated the once-lucrative physical media market. The layoffs highlight the need for traditional media companies to rapidly adapt their operations and workforce to the new digital landscape.