Layoffs: Disney To Cut Down Workforce At ABC News Group And Disney Entertainment Networks, Says Report

The layoffs are expected to be made public around Wednesday and could impact less than 200 employees across both units, the report said citing sources.

Disney is also reportedly planning to combine its digital editorial and social teams with news gathering, shows, and owned stations.

Source : Disney

Disney is planning to cut down roughly about 6 per cent of its overall workforce of the ABC News Group and Disney Entertainment Networks, media reports said. Citing sources in the know, Reuters reported that the entertainment company is struggling with declining TV audience.

The layoffs are expected to be made public around Wednesday and could impact less than 200 employees across both units, the report said citing sources. Majority of the firings are expected to be centered on employees in ABC News, the report said.

Further, some ABC shows such as ‘20/20’ and ‘Nightline’ are also consolidating into a single unit, the report noted. Disney is also reportedly planning to combine its digital editorial and social teams with news gathering, shows, and owned stations.

The popular news talk show ‘Good Morning America’ is owned by ABC News and all three hours of the branded show are expected to be combined under one leader, The Wall Street Journal reported this week. Currently, the show’s third hour has a separate production team.

Streaming Platforms Outdating Cable TV

Media companies are looking at their business strategies as the cable TV audiences continue to migrate towards streaming platforms. In the October-December quarter, Disney clocked a massive jump in its adjusted per-share earnings at $1.76, climbing 44 per cent.

Notably, last year, Disney announced layoffs at the corporate level as part of its strategy to help increase the firm’s profitability. An emailed statement by the firm at the time read, “As part of this ongoing optimisation work, we have been reviewing the cost structure for our corporate-level functions and have determined there are ways for them to operate more efficiently.”