The Walt Disney Company is laying off approximately 200 employees, representing nearly 6% of the combined workforce in its ABC News Group and Disney Entertainment Networks units, as part of a larger restructuring effort.
According to The Wall Street Journal, the move, announced on Wednesday, reflects Disney’s ongoing response to the rapidly changing media landscape. The company is grappling with shifts in consumer behavior and the declining influence of traditional cable television.
Key divisions within the restructuring will be affected. ABC’s long-running news programs, 20/20 and Nightline, are merging into a single unit. Additionally, the team behind FiveThirtyEight, the political and data analysis website, is being eliminated. The staff at Good Morning America is also expected to see layoffs, while within the Disney Entertainment Networks division—which oversees channels like FX—staff reductions are anticipated in programming and scheduling operations.
While Disney has not publicly commented on the layoffs, the news did not appear to significantly impact the company’s stock price, which showed little movement in premarket trading on Wednesday. The Status newsletter was the first to report the layoffs at ABC News.
These job cuts come as Disney, like much of the entertainment industry, is forced to adapt to a rapidly evolving media environment. The ongoing decline in cable television viewership, fueled by cord-cutting and the growing popularity of streaming services, has put pressure on Disney’s traditional broadcast business.
Meanwhile, Disney’s streaming service, Disney+, has faced subscriber losses in recent quarters. Despite the setback, the company has worked to reduce streaming business losses. In the final quarter of 2023, Disney+ saw a decline of 1.3 million subscribers after raising subscription prices in the fall, although it managed to cut its streaming losses by $300 million during the same period.
