Disney Announces Staff Reductions at ABC News and Entertainment Units Amid Industry Shift

Key Highlights

• Disney is set to cut around 200 jobs, representing just under 6% of combined staff at ABC News Group and Disney Entertainment Networks.
• The Wall Street Journal reports an official announcement to employees may occur as soon as Wednesday.
• The company faces challenges from cord-cutting trends and declining cable viewership, alongside subscriber decreases on its Disney+ streaming service.

The Walt Disney Company is initiating workforce reductions affecting approximately 200 employees within its ABC News Group and Disney Entertainment Networks divisions. This move corresponds to nearly 6% of the combined staff, as reported by The Wall Street Journal.

Sources familiar with the situation indicate that Disney plans to notify affected employees imminently. Notably, the ABC news magazine programs "20/20" and "Nightline" will merge into a single unit. Additionally, the political and data-driven news site FiveThirtyEight and a production team from "Good Morning America" are expected to be downsized. Job cuts will also impact program planning and scheduling teams within the Disney Entertainment Networks, which includes the FX cable channel.

Disney has yet to provide an official statement regarding these changes. The company’s stock has remained relatively stable in premarket trading. Initial reports about these layoffs were first highlighted by the newsletter Status.

Like many in the entertainment sector, Disney is navigating the challenges posed by cord-cutting and a shrinking cable audience. Its Disney+ streaming platform has experienced a sequential decline in subscribers, contrasting with competitors like Netflix, which continues to grow its user base and adjust pricing strategies. Despite these subscriber trends, Disney recently reported quarterly earnings that exceeded expectations but anticipates a modest subscriber decrease in the upcoming quarter.

Over the past year, Disney’s stock has declined by approximately 4%, whereas Netflix’s shares have surged nearly 60%.

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