Disney is in the middle of massive theme park expansions at their resorts around the world. They have committed to spending $60 billion over the next decade expanding the Disney theme parks and cruise line. Now, a new theme park that was thought to be in active development, but that was never announced, has been reportedly shelved. While most Americans would never have seen the final project if the report is true, there are two key impacts to other Disney theme park expansions that are important to understand.
Last week we reported on the layoffs at Walt Disney Imagineering. Now, we have some additional context on why the layoffs may have happened based on an insider media report. Plus, our analysis to give you context on why these matter. Mickey Visit brings you the latest Disney news and planning resources, including new Disneyland Magic Key perks and a new Downtown Disney concert series.
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Disney’s Shelved Theme Park Plan Reportedly Caused Recent Layoffs
Last week we shared the news that Disney is laying off 100-200 employees in Disney Experiences. The report first came from the LA Times. At the time, we knew that the layoff was largely targeting Walt Disney Imagineering, the creative group responsible for Disney theme park design.
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We have now learned that there were 159 Imagineers based in California who were impacted by the layoff, per a California labor notice. The notice states that the layoff effective date is December 29, 2026.
It is our understanding that these layoffs are a result of a shift in project priorities. Now, a separate news report from entertainment industry insider Matt Belloni at Puck News shared more specifics on the project that was impacted by this priority shift.
In a newsletter blurb, Belloni first wrote that the new Disney Abu Dhabi theme park is still happening, shutting down rumors. Then, he shared that the second theme park in development for the Shanghai Disney resort has been “backburnered indefinitely”.
While it was never announced, the park was described as an “open secret within Imagineering”, per Belloni. He wrote that “a big chunk of the eliminated WDI jobs were concentrated on that development team.”
A Disney rep declined to comment on his report. Belloni also reported that Disney will now prioritize other ways to improve the presence in China.
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Shanghai Disney turned 10 years old this year. Rumors swirled around the time of the 10-year anniversary earlier this year that the event would be used to announce a second theme park. At one point, the second park was planned to be built in an EPCOT style with a focus on nature, culture, and the arts. Former head of Walt Disney Imagineering, Bob Weis, shared details on the plans in his book Dream Chasing.
Development for other expansions at Shanghai Disney remains ongoing. For instance, they are working on a new Spider-Man roller coaster as seen below. There is also a fourth hotel that is moving forward in development and an expansion of Disneytown’s shopping, dining, and entertainment experiences. Disney also opened an impressive new Zootopia-themed land at the park.
The Shanghai Disney resort is a joint venture between Disney and the Shanghai Shendi Group. Disney is paid royalties based on the resort’s revenues, and expansion costs are shared between the two companies. Walt Disney Imagineering is used to design new rides and attractions. The ownership structure context is important because any huge project like a new park would require alignment from both groups. The cancellation could have come from a decision by the Shanghai Shendi Group influenced by the Chinese market.
We are not taking these layoffs as a sign of any decrease in Disney’s theme park ambitions. The project is a joint venture in a different international market. The move to slow down that project seems to have no bearing on the huge overall investments and expansion planned in the other theme parks and cruise line.
That said, there are a few considerations for why it does matter to United States readers.
The initial development of Shanghai Disney acted as a testing and development ground for both Imagineering talent and actual rides and ride systems. The construction of that park helped to fund the development of multiple new attractions for the US parks. The cost to develop the attraction could be shared with the Shanghai group and then also benefit the US theme parks that Disney fully owns.
From the original Shanghai Disney park, Disney developed the Seven Dwarfs Mine Train for Magic Kingdom using some of the budget for Shanghai before it was built for both parks. They also then built a copy of the TRON ride from Shanghai at Magic Kingdom. Soarin’ Over the World was also shot for Shanghai Disney before being brought to Disney California Adventure and EPCOT. In the future, some have hypothesized that the ride system from the next-generation Pirates of the Caribbean in Shanghai may be the system used for the new Avatar experience coming to Disney California Adventure. In return, Shanghai used the same ride system for their new Zootopia ride that was used for Mickey & Minnie’s Runaway Railway.
The new theme park would have resulted in similar positive development, but so will another major project. The US theme parks will likely get the same benefit from the development of the Abu Dhabi theme park. Disney is reportedly only responsible for the design of that theme park and has a licensing relationship. The same thing happens with technology and techniques developed at Tokyo Disney, but there are no direct copy examples like the three above from Shanghai. We could see new rides developed for Abu Dhabi then influence or be directly copied to domestic parks.
The development of the people working on the new additions is also critical. The layoff means that there are fewer Imagineers cutting their teeth on grand, ambitious plans that would prepare them for future theme park projects at the Disney theme parks that you visit. Consider, for instance, that the two lead Imagineers for Disneyland in California came over from Tokyo Disney.
The disappointing thing for me is that there was no other project for these Imagineers to move to. It’s sad to see a group of people who I know are so passionate about what they are doing impacted by something like this. Being an Imagineer is a dream job for so many, and this decision, outside their control, to shelve the new park meant that there weren’t active projects for them to work on. For all the Imagineers impacted, we wish you the best and that you find another great project.
Right now, Imagineering is bigger than ever and is expanding at site-specific locations. For instance, Walt Disney World is building its own large Imagineering presence, and much of the work for that resort is now Florida-based.
Leaders are now prioritizing having Imagineers on site in Florida as close to the parks they are designing things for as possible. We’ve seen lots of impactful smaller projects come out of the closeness of the current Walt Disney World Imagineering team with the leadership team there. The same is true at Shanghai Disney, where local teams have picked up more of the design work.
This shift in staffing strategy likely means that there are fewer projects in Glendale, California, where the reported 159 Imagineers impacted by the layoffs are located.
There are currently more projects underway at the Disney theme parks than at any point in the company’s history. At the Disneyland Resort, there is ongoing work to add a new Pixar Coco boat ride, two new Avengers Campus rides, a new Avatar area, and an overhaul of Tomorrowland. See the latest Disneyland project status here. At Walt Disney World, there are massive new areas coming to Magic Kingdom themed to Cars and Villains, a new Monsters, Inc. land coming to Hollywood Studios, new Encanto and Indiana Jones attractions coming to Animal Kingdom, and more. See all the new rides coming to Walt Disney World. Plus, a new cruise ship coming next year and more after that.
There are also new additions coming to the international theme parks and completely new cruise ships.
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