Disney to cut 6% of workforce amid declining TV viewership. Here's what you need to know.
Henry Russell
affecting ABC News Group and Disney Entertainment Networks.
of a broader strategy to tackle declining TV viewership.
44% jump in adjusted earnings.
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Disney's iconic castle might be a symbol of magic, but it looks like some hocus-pocus is needed in its operations. As the streaming world continues to play pied piper to cable TV audiences, Disney's workforce will experience a cut of roughly 6%. What's causing the entertainment empire's shake-up? Apparently, the traditional TV steam engine is losing steam.
In an attempt to balance the magic wand, Mickey's maker plans to slash about 200 jobs from its ABC News Group and Disney Entertainment Networks. This comes as TV viewership continues its slump into streaming platforms' inviting arms.
According to a whistleblower with insider knowledge (who wishes to remain anonymous—just like everyone else we ever wanted to talk to), this round of cuts should be announced imminently, with ABC News bracing for the brunt. Iconic shows, including "20/20" and "Nightline," are set to buddy up in a bid for consolidation.
ABC News isn't just compiling budgets; it's blending teams, integrating its social and digital editorial cadre with news gathering operations. Oh, and all three hours of "Good Morning America" are cozying up under a singular guiding hand—streamlining at its best, or worst, depending on your chair at the breakfast table.
This doesn't mark the end of TV as we know it—just a new beginning. Industry giants, Disney included, are overhauling their blueprints, acknowledging viewers' changing loyalties from cable to streaming. The draw to Netflix, Disney+, Prime Video, and other on-demand delights has been a powerful siren song, forcing traditional media to shapeshift.
For Disney, though, the silver screen does show some shimmering silver lining. Despite the looming layoffs, Disney reported an impressive 44% spike in adjusted per-share earnings, pocketing $1.76 per share in the October-December quarter. Financial wizardry, it seems, remains potent as ever.
As the layoffs roll out, the entertainment realm watches with bated breath. Will Disney's decisions breathe life into their legacy? Or simply be added footnotes in the tale of TV's transformation?
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