Disney (DIS) is eliminating 6% of staffers, or just under 200 employees, from its news and entertainment division, Yahoo Finance confirmed on Wednesday.
The bulk of the cuts will impact ABC News, which is also shuttering its political and data-driven news site 538. Disney’s ESPN first acquired 538 from Nate Silver in 2013 before it was transferred to the network side of the company five years later.
As part of the layoffs, first reported by the Wall Street Journal and the newsletter Status, production teams across “20/20” and “Nightline” will consolidate, along with the three hours of “Good Morning America’s” branded shows.
Disney stock was little changed on the news. Shares are down about 2% since the start of the year, lagging the broader S&P 500 (^GSPC).
“Rethinking the way we work to future-proof our team regrettably includes reductions to our extraordinary staff,” Almin Karamehmedovic, president of ABC News, said in an internal memo viewed by Yahoo Finance.
The cuts come as Disney works to streamline operations in the midst of traditional television’s rapid decline. “ABC News Group and Disney Entertainment Networks continually evaluates new ways to effectively manage resources and boost efficiencies,” Karamehmedovic added.
Since 2023, Disney has eliminated more than 8,000 roles in an effort to cut $7.5 billion worth of annual costs.
Disney, like other legacy media companies, has heavily invested in expensive streaming endeavors amid the mass exodus of pay TV consumers.
In its latest earnings release, Disney reported a 7% year-over-year decline in linear network revenue. Operating income for the division dropped 11%.
Prior to the cord-cutting phenomenon, linear advertising and cable affiliate fees had consistently boosted revenues. But as ad buyers now flee traditional TV channels in favor of digital options like streaming, companies are beginning to realize they may never realize those economics again.
These pressures have resulted in waves of layoffs across the industry as companies double down on streaming through newly launched ad-supported tiers, bundled offerings, and price hikes.
Read more: Do you pay taxes on unemployment? What to expect when you file your return.
Disney management has continued to reiterate, however, its intention to hold on to traditional TV assets.
“Linear networks and streaming are in many ways two sides of the same coin because a lot of the content that we produce actually winds up in both locations,” Disney CFO Hugh Johnston told Yahoo Finance last month.
Sign in to access your portfolio
In This Article:
Recommended Stories
RECOMMENDED
Stephen A. Smith spars with Whoopi Goldberg on the real cause of Democrats’ 2024 loss
Bill Murray, Bob Woodward share ‘tense’ words over John Belushi book at Kennedy Center
CBS files motion to dismiss Trump’s $20B ‘60 Minutes’ lawsuit: ‘Affront to the First Amendment’
‘The View’ host Sunny Hostin scolds Democrats for not walking out of Trump speech to Congress
BBC boss calls Gaza documentary ‘dagger to the heart’ after narrator revealed to be son of Hamas terrorist
‘Daily Show’ host Jon Stewart agrees to Elon Musk’s demand for ‘unedited’ interview: ‘We’d be delighted’
ABC News ‘entirely gutted’ ‘GMA3,’ fired executive producer as part of layoffs: ‘People are crying and upset’
ABC News to lay off dozens, merge ‘Good Morning America’ and ‘GMA3,’ ax ‘FiveThirtyEight’ data site
Disney laying off employees at ABC News, polling site 538 is shutting down
Disney is cutting nearly 6% of staff across its ABC News and Disney Entertainment Networks units, a person with knowledge of the situation told USA TODAY.
The layoffs will affect under 200 employees, representing less than 6% of the total ABC News Group and Disney Entertainment Networks workforce, the person said on Wednesday.
The company also plans to dissolve its 538 brand, a popular political polling website, and merge three shows: “20/20,” “Nightline” and “Impact x Nightline.”
Staff members who were laid off were notified Wednesday, the person added. The majority of the laid-off employees work at ABC News, with most of them being based in New York, according to the individual.
Disney worked hard to minimize the number of affected employees as much as possible, the person said, adding that the company is in the process of evaluating “new ways to effectively manage resources and boost efficiencies.”
All three hours of “Good Morning America” branded shows will be overseen by one individual, as opposed to a third hour having its own production team, the Wall Street Journal reported. The person said the individual in the head position will be Simone Swink, who has been with “Good Morning America” since 2010, according to IMDB.
While Disney attempts to cut costs as it competes with other streaming services in delivering an array of content to users, the company did report a 44% jump in adjusted per-share earnings of $1.76 for the October-December quarter, according to Reuters.
As of Wednesday morning, Disney’s stock was close to even on the day, hovering around $109.
