Status Update: Disney Reportedly Axes Expansion Plans Amid Mass Layoffs

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Disney has reportedly axed plans to expand one of its theme park resorts.In 2023, Disney announced plans to invest approximately $60 billion in its Experiences division over the following decade. Since then, the company has unveiled major expansions across its global theme park portfolio.Credit: DisneyAt Walt Disney World, projects include Villains Land, a Cars-inspired area, and new attractions themed to Monsters, Inc. (2001), Encanto (2021), and Indiana Jones. Disneyland Resort is also expanding, while Disneyland Paris is developing a new Lion King (1994) area, complete with its own take on a Splash Mountain-esque attraction.Disney has even announced plans for an entirely new (and controversial) resort in Abu Dhabi in partnership with Miral.However, the company’s ambitious plans have come under scrutiny following another round of layoffs.On October 28, the Los Angeles Times reported that Disney was cutting between 100 and 200 positions within its Experiences division, primarily affecting Walt Disney Imagineering. A subsequent filing confirmed 159 permanent layoffs at its Glendale headquarters.Credit: DisneyNow, one rumored expansion appears to have been shelved.Disney Reportedly Shelves Plans for Second Shanghai Disneyland ParkAccording to Puck, Disney has indefinitely shelved plans to expand Shanghai Disney Resort with a second theme park.The outlet reports that a substantial portion of the recently eliminated Imagineering positions were associated with the proposed development, which had reportedly been progressing behind the scenes despite never receiving an official announcement.Credit: Shanghai DisneyShanghai Disney Resort currently consists of one theme park, Shanghai Disneyland, which opened in June 2016. A second park would have made Shanghai a multi-park Disney destination, joining the likes of Walt Disney World, Disneyland Resort, Tokyo Disney Resort, and Disneyland Paris.Disney has never publicly confirmed plans to construct another theme park in Shanghai, making the reported decision difficult to assess. It is also unclear why the project has apparently been deprioritized or whether work could resume in the future.The latest reports nevertheless represent a significant development for a project that has been the subject of speculation for years.What Were Disney’s Plans for a Second Shanghai Theme Park?Rumors of a second Shanghai Disneyland theme park stretch back years, with former Walt Disney Imagineering president Bob Weis confirming in his 2024 memoir, Dream Chasing, that Imagineers had previously developed concepts for another park.Credit: Shanghai Disney ResortAccording to Weis, an early proposal explored a destination focused on nature, culture, and the arts, with similarities to EPCOT at Walt Disney World. However, the concept was deemed premature, and Disney ultimately shifted its focus to developing a Zootopia-inspired land instead.That land eventually opened at Shanghai Disneyland in December 2023, becoming the world’s first dedicated Zootopia area.Speculation surrounding a second park resurfaced in early 2026, when alleged concept art began circulating online. The images appeared to depict an EPCOT-style development, complete with a large spherical structure resembling Spaceship Earth.Is this leaked concept art for a Shanghai Disneyland second gate park? Looks very Epcot-like! With this being the Shanghai Disney’s 10th anniversary, many believe they’re announcing a second park later this yearIs this leaked concept art for a Shanghai Disneyland second gate park? Looks very Epcot-like! With this being the Shanghai Disney’s 10th anniversary, many believe they’re announcing a second park later this year https://t.co/9iF0Tjz6Vz— Taylor Bybee (@coasterstudios) March 26, 2026The rumored development was reportedly operating under the codename Project Atlas, with leaked plans suggesting it could occupy land east of the existing Shanghai Disneyland park. However, neither the concept art nor the project’s reported name was authenticated by Disney.The rumors intensified ahead of Shanghai Disneyland’s tenth anniversary in June 2026. Several outlets suggested Disney was preparing to announce another theme park to mark the milestone, with some speculation pointing toward an opening around 2031.On June 16, Forbes reported that industry insiders believed a second park was moving forward. The publication also highlighted speculation about potential themes, including Avatar and Marvel, although no concepts had ever been officially confirmed.Credit: Shanghai DisneylandDespite the speculation, Disney made no such announcement during its anniversary celebrations. The company’s D23 event in August 2026 also passed without confirmation of a second Shanghai theme park (or, in the eyes of many Disney fans, much new information at all).Ongoing Work at Shanghai DisneylandFor now, Shanghai Disney Resort is continuing with other confirmed expansion projects. These include a new themed land featuring a Spider-Man roller coaster, two additional hotels (one of which is set to open in December), and an expansion of Disneytown’s shopping, dining, and entertainment facilities.None of these projects has been identified as canceled in the latest reports.Beyond its headline attractions, Shanghai Disneyland offers plenty of experiences unique to the resort. Guests can tackle the rope courses of Camp Discovery, brave the rapids of Adventure Isle, or explore an Alice in Wonderland maze. Fantasyland also features Peter Pan’s Flight and Voyage to the Crystal Grotto (which recently gave guests a scare when one boat started billowing smoke).Entertainment is another major part of the park’s lineup. Guests can watch Eye of the Storm: Captain Jack’s Stunt Spectacular, join a Frozen (2013) sing-along, or catch Mickey’s Storybook Express parade. And at night, Enchanted Storybook Castle continues the castle park tradition of hosting elaborate projection shows and fireworks.Do you think Disney should add a second park to Shanghai Disneyland?The post Status Update: Disney Reportedly Axes Expansion Plans Amid Mass Layoffs appeared first on Inside the Magic.