Key Takeaways
- The entertainment and media industry experienced over 17,000 job cuts in the first 11 months of 2025, an 18% increase from the previous year.
- The most cited reason for layoffs was restructuring and industry consolidation, with companies like Paramount, Disney, and Warner Bros. Discovery undergoing significant job cuts.
- The rise of artificial intelligence (AI) has led to companies cutting jobs, with AI-driven layoffs accounting for nearly 55,000 job cuts in 2025.
- The creator economy has grown in 2025, with employment in the motion picture and sound recording industries decreasing by 27% from 2022 to 2024, while employment in the creator economy increased by 5%.
- The microdramas business has also grown, with the market surpassing $8 billion globally in just four years.
Introduction to the Entertainment Industry Layoffs
The entertainment and media industry has suffered another difficult year, with over 17,000 jobs cut across television, film, broadcast, news, and streaming in the first 11 months of 2025. This figure is up 18% from the previous year, continuing a trend of consolidation and contraction in the industry. The most cited reason for layoffs was restructuring and industry consolidation, with companies like Paramount, Disney, and Warner Bros. Discovery undergoing significant job cuts. The FCC’s approval of the Paramount-Skydance merger in July led to layoffs across the Paramount entertainment business, while Disney laid off hundreds of employees as part of CEO Bob Iger’s initiative to cut costs amid an audience migration away from cable TV subscriptions to streaming platforms.
The Impact of AI on the Industry
The rise of artificial intelligence (AI) has also led to companies cutting jobs, with AI-driven layoffs accounting for nearly 55,000 job cuts in 2025. A World Economic Forum survey found that 41% of companies worldwide expect to reduce their workforces over the next five years due to the rise of AI. Generative AI’s ability to handle more complicated tasks has led to companies cutting jobs, although the actual return on investment of AI tools has been disappointing. Correspondingly, tech jobs in big data, fintech, and AI are expected to double by 2030, according to the WEF. As AI cements itself into everyday life, digital media companies are struggling to adapt, with some sites shuttering due to their reliance on SEO and search.
The Creator Economy and Microdramas
Despite the overall decline in employment in the entertainment industry, the creator economy has grown in 2025. Employment in the motion picture and sound recording industries decreased by 27% from 2022 to 2024, while employment in the creator economy increased by 5%. The microdramas business has also grown, with the market surpassing $8 billion globally in just four years. The industry has employed Hollywood production crews, non-union actors, and writers to create bite-sized, bingeable episodes that turn a profit. This growth is a positive sign for the industry, as it indicates that there are still opportunities for creators and producers to thrive in the digital age.
The News Industry and Layoffs
The news industry has also been affected by the rise of AI, with several news organizations taking hits as they pivot to keep up with audiences’ shortening attention spans and growing content sources. Dotdash Meredith, one of the largest media publishers in the United States, laid off 143 employees to adapt to the "rapidly changing" media industry and increase its investments in other projects. The Washington Post cut 4% of its workforce, roughly 100 employees, specifically affecting its advertising, marketing, and information technology teams. Forbes laid off 5% of its employees, citing unmet internal financial goals as the primary reason. CNN slashed 200 staffers in January, as the company pivoted towards digital post-election and geared up for the release of a new streaming service.
The Broader Impact of Layoffs
The layoffs in the entertainment and media industry are not isolated, but rather part of a broader trend of job cuts across various sectors. According to Andy Challenger, workplace expert and chief revenue officer at Challenger, Gray & Christmas, the month of November saw over 71,000 layoffs overall, the second-highest over the last five years. This trend is expected to continue, with companies shifting away from year-end layoff announcements and instead opting for more frequent, smaller-scale job cuts throughout the year. As the industry continues to evolve and adapt to new technologies and changing consumer habits, it is likely that we will see more job cuts and restructuring in the entertainment and media industry.
Conclusion
In conclusion, the entertainment and media industry has experienced a difficult year, with over 17,000 job cuts in the first 11 months of 2025. The rise of AI has led to companies cutting jobs, while the creator economy and microdramas business have grown. The news industry has also been affected, with several news organizations taking hits as they pivot to keep up with changing audience habits. As the industry continues to evolve, it is likely that we will see more job cuts and restructuring, but also new opportunities for creators and producers to thrive in the digital age.
