Restructuring at ABC News and Disney Entertainment Networks to Impact Nearly 200 Employees

The Walt Disney Company is set to eliminate approximately 6% of its workforce at ABC News Group and Disney Entertainment Networks, impacting fewer than 200 employees, according to a source familiar with the matter. The layoffs are part of Disney’s broader strategy to optimize costs and respond to changing media consumption trends, particularly the ongoing decline in traditional TV viewership and the rise of digital and streaming platforms.

An official announcement regarding the job cuts is expected soon, with most of the impact anticipated at ABC News.

ABC News Faces Major Workforce Reduction and Content Consolidation

The restructuring will primarily target ABC News, which has been a staple in the broadcast journalism industry, producing hit shows like “Good Morning America”, “20/20”, and “Nightline.”

According to sources, several ABC shows will be consolidated, including “20/20” and “Nightline”, which will merge into a single operational unit.
Additionally, ABC News’ digital editorial and social media teams will be integrated with the news-gathering divisions, broadcast shows, and local stations, streamlining the company’s overall content strategy.
Reports indicate that all three hours of “Good Morning America” will now fall under a single leadership structure, marking a significant shift in production dynamics.

While ABC News has yet to issue an official statement, the restructuring is expected to be announced as early as Wednesday, sources said.

Disney’s Decision: Why the Layoffs?

The media and entertainment industry is undergoing massive shifts, and Disney is no exception. The layoffs reflect the company’s efforts to adapt to evolving business challenges and audience behaviors:

Declining TV Viewership: As audiences migrate away from cable and network television, traditional broadcast media has struggled to maintain advertising revenue.
Streaming Takes Priority: Disney has been shifting focus toward its direct-to-consumer services, including Disney+, Hulu, and ESPN+, which are central to its long-term growth strategy.
Cost Optimization: The company continues to restructure its media divisions to cut costs, improve efficiency, and align its workforce with new priorities.
Industry-Wide Layoffs: Disney is not alone in implementing job cuts. Warner Bros. Discovery, Paramount Global, and NBCUniversal have all taken similar actions as the traditional TV business contracts.

The Financial Landscape: Disney’s Recent Performance

Despite these restructuring efforts, Disney’s financial performance has remained strong.

The company recently reported a 44% increase in adjusted per-share earnings, reaching $1.76 per share for the October-December quarter, reflecting strong operational performance.
Disney’s streaming division, particularly Disney+ and Hulu, has seen subscriber growth, which has reinforced its decision to prioritize digital expansion over traditional media.

The Future of Disney’s Media Business

Disney’s media strategy is evolving rapidly, and these layoffs are part of a larger shift toward a more digital-centric approach.

The company is expected to continue consolidating its legacy TV assets while investing heavily in digital-first content creation.
With the continued decline in linear TV advertising revenue, Disney is exploring new monetization models, including advertising-supported streaming tiers.
ABC News will likely adopt a more integrated digital approach, ensuring its news operations remain relevant in an increasingly on-demand media environment.

What’s Next?

As the media industry undergoes fundamental transformation, Disney is positioning itself for long-term sustainability by cutting costs, investing in streaming, and reshaping its legacy businesses.

The layoffs, while significant, are part of an ongoing trend of restructuring within major media companies, signaling a new era in content distribution and consumption.