Marvel Cuts 8% of Workforce Amid Wokeness Backlash

California's high costs, taxes and regulations drive studios to leave, hurting local economy

Apr. 16, 2026 at 2:51am

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An abstract, minimalist composition of jagged, geometric shapes in bold red and white, conceptually representing the decline of the entertainment industry in California.The entertainment industry's struggle with wokeness and unfriendly policies in California casts a long shadow over the future of Hollywood.NYC Today

Marvel Entertainment has announced it is cutting 8% of its workforce, the latest sign of trouble in the entertainment industry. The layoffs are happening in both New York and Burbank, California, as the company struggles with the shift to streaming and the backlash against 'woke' content that has alienated many fans.

Why it matters

The decline of Hollywood during Gavin Newsom's two terms as California governor will be part of his enduring legacy, as the state's high costs, taxes and regulations have driven studios to leave, along with Hollywood unions' role in convincing studios to invest abroad or turn to artificial intelligence rather than local labor.

The details

Marvel, once a box office superhero, has created its own 'kryptonite' in the form of woke content that prioritizes victim narratives over heroic stories that appeal to ordinary people. The company hasn't had a major hit since 'Deadpool & Wolverine' in 2024, and its parent company Disney has also been criticized for going too far with ideological agendas in its films.

  • Marvel announced the 8% workforce reduction on April 15, 2026.
  • The layoffs are happening in both New York and Burbank, California.

The players

Marvel Entertainment

A major entertainment company known for its superhero franchises like Spider-Man, X-Men, and the Avengers.

Gavin Newsom

The governor of California, whose policies and regulations have been cited as contributing to the decline of the entertainment industry in the state.

Disney

The parent company of Marvel Entertainment, which has also faced criticism for incorporating too much 'woke' content in its films.

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What’s next

The entertainment industry will need to reject wokeness and create films that appeal to a broader audience in order to recover. California will also need to address its high-tax, heavy-regulation, and big-union business climate to help the industry thrive.

The takeaway

Marvel's layoffs and the broader decline of Hollywood in California during Gavin Newsom's tenure as governor highlight the need for the entertainment industry to move away from ideological agendas and focus on creating content that resonates with mainstream audiences.