Disney to lay off nearly 6% of workforce over failing TV viewership
The Walt Disney Company is preparing to lay off approximately 200 employees—nearly 6% of the combined workforce at its ABC News Group and Disney Entertainment Networks units.
A report first published by The Wall Street Journal made this announcement on Wednesday, signaling another wave of restructuring within the company as it navigates industry-wide shifts in consumer behavior and the declining influence of traditional cable television.
According to WSJ, several key divisions to be affected by this restructuring are: ABC’s long-running news magazine programs, 20/20 and Nightline, are set to merge into a single unit, while the company is also eliminating the team behind FiveThirtyEight, the political and data analysis website.
Additionally, the production staff at Good Morning America is expected to be affected. Within the Disney Entertainment Networks division, which oversees cable channels such as FX, reductions are anticipated in programming and scheduling operations.
What we know
At the moment, Disney has not publicly commented on the reported layoffs. The company’s stock showed little movement in premarket trading on Wednesday. According to The Wall Street Journal, the newsletter Status was the first to report the impending cuts at ABC News.
- The layoffs come as Disney, like much of the entertainment industry, contends with a rapidly evolving media landscape. The ongoing decline in cable television viewership, driven by cord-cutting and the rise of streaming services, has challenged the company’s traditional broadcast business.
- Meanwhile, Disney’s flagship streaming platform, Disney+, has experienced subscriber declines in recent quarters, even as competitors such as Netflix continue to expand and raise subscription fees.
- Last year Nairametrics reported that Disney+ experienced a decline of 1.3 million subscribers in the final quarter of 2023 following a substantial price increase introduced in the fall.
Despite the loss in subscribers, the streaming platform successfully reduced its streaming business losses by $300 million during the October-December period.
What to know
Despite these challenges, Disney’s most recent earnings report exceeded Wall Street expectations, driven in part by cost-cutting measures and strong performances in its theme park and experiences segment. However, the company has acknowledged that it anticipates a “modest decline” in Disney+ subscriptions for the second quarter.
- The layoffs appear to be part of a broader strategy to reduce expenses and streamline operations as Disney adapts to a rapidly evolving media industry.
- Disney’s stock also declined approximately 4% over the past year, reflecting investor concerns over the company’s ability to navigate industry headwinds.
The layoffs at Disney mark the latest chapter in an industry-wide shift that has seen major media companies rethink their business models.
