The Walt Disney Company is set to lay off approximately 200 employees, representing about 6% of its workforce at ABC News Group and the Disney Entertainment Networks division. This restructuring is part of Disney’s broader strategy to adapt to declining traditional TV viewership as audiences increasingly shift to streaming platforms.

Restructuring Measures

• Consolidation of News Programs: ABC’s “20/20” and “Nightline” will be merged into a single unit, reflecting Disney’s efforts to streamline operations and reduce costs.
• Closure of FiveThirtyEight: The political and data-driven news site, which employed about 15 people, will be discontinued as part of these measures.
• Good Morning America Consolidation: All three hours of the show will now be overseen by a single production head, eliminating a separate team for the third hour.

Layoffs will also affect program planning and scheduling departments within Disney Entertainment Networks, as the company seeks to enhance operational efficiency.

Disney’s decision to reduce its workforce is driven by the ongoing shift towards streaming services. Despite strong financial performance in other areas, such as a 44% increase in adjusted earnings per share and a significant boost in operating income from successful films like “Moana 2,” Disney is restructuring to align with evolving industry trends.

• Adjusted Earnings Per Share: Disney reported a 44% increase, reaching $1.76 for the October-December quarter.
• Entertainment Division: Operating income nearly doubled to $1.7 billion, driven by successful holiday box office results.

Disney’s layoffs at ABC News and Entertainment Networks reflect the company’s strategic response to the changing media landscape. As Disney continues to invest heavily in streaming, these restructuring efforts aim to balance profitability across traditional and digital platforms.

Key Highlights:

• Layoffs Overview: Disney is cutting nearly 6% of its workforce at ABC News Group and Disney Entertainment Networks.
• Restructuring Measures: Includes consolidating news programs and closing FiveThirtyEight.
• Industry Context: The layoffs are part of Disney’s response to declining traditional TV viewership and shifting audience preferences.
• Financial Performance: Despite layoffs, Disney reported strong earnings growth in other divisions.