Crunchyroll Announces Layoffs Amid Global Reorganization

A day after unveiling a major deal with Delta Airlines, Crunchyroll has announced a sweeping internal reorganization that includes layoffs in the U.S., new global engineering hubs, and role changes for staff.

In a letter to employees, published by Variety, president Rahul Purini framed the shake-up as a proactive step to position the anime streamer for “scale and success” over the next three to five years. The changes include the creation of “centers of excellence” in the U.S., India, and Mexico, along with a shift toward regionally empowered teams. Purini stressed the move was “not a cost-cutting measure or driven by financial performance,” but rather part of a strategy to lean more deeply into anime fandom worldwide.

The announcement comes amid a period of both rapid growth and mounting challenges for the Sony-owned platform. Since Sony Group Corp. bought Crunchyroll in 2021 for $1.2 billion, subscribers to its service have tripled to 15 million, and the number of new shows released each quarter has doubled. But the rising popularity of anime has brought fierce competition from the likes of Netflix, Disney, and Amazon, driving up licensing costs and making it harder for Crunchyroll to hold onto its corner of the market.

Internally, the company has undergone at least three rounds of layoffs since the Sony acquisition, with staff surveys showing declining confidence in leadership. According to internal polling shared by Bloomberg, only 39% of employees recently agreed that management communicates a motivating strategy, down from 51% in a prior survey. Some current and former staffers have described the post-acquisition leadership, many from Sony’s Funimation division, as “out-of-touch” with anime fans and culture.

Crunchyroll has also faced strategic setbacks. Its “25 by 25” initiative, aiming for 25 million subscribers by the end of 2025, appears increasingly out of reach. Plans to drive growth through video games and e-commerce have stumbled, with several game titles shuttered and its Right Stuf merchandise business shrinking since Sony removed adult products that had contributed to sales.

Competition for top anime titles has intensified. Other top streamers have secured exclusives for key IPs such as Jojo’s Bizarre Adventure, Tokyo Revengers, and Delicious in Dungeon, while major Japanese studios such as Toei and Toho have explored partnerships beyond Crunchyroll. At the same time, industry sources say rising licensing fees are squeezing margins.

Despite the turbulence, Crunchyroll is pursuing new markets, offering subscriptions in India for about $1 a month, expanding dubbing into multiple local languages, and creating free, ad-supported channels on platforms like Roku and Pluto TV. The new Delta Airlines partnership, announced just a day before the layoffs, will bring over 50,000 episodes of anime to in-flight screens later this year, marking a high-profile bid to expand the brand’s reach.

Whether the restructuring will stabilize internal morale and sharpen Crunchyroll’s competitive positioning remains to be seen. For now, the company’s message is one of optimism: doubling down on fandom, investing in regional teams, and betting that its blend of exclusive titles, events, and merchandise can keep pace with an increasingly crowded anime streaming market.