Disney is planning to lay off about 200 employees, or roughly 6 percent of the workforce, at its ABC News Group and Disney Entertainment Networks unit, according to a report from The Wall Street Journal. The cuts, expected to be announced as early as this week, will affect various roles within the company, including those involved in program planning and scheduling at the Disney Entertainment Networks unit.
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ABC News, home to popular programs like Good Morning America, is also set to undergo significant restructuring. The third hour of Good Morning America, previously produced by a separate team, will now be consolidated under one person. 20/20 and Nightline, two of ABC's major news shows, will also be merged into a single unit. Additionally, the political and data-driven news site 538, which employs around 15 people, will be eliminated.
The cuts come as Disney continues to grapple with declining television viewership, a trend that has accelerated with the rise of streaming services. As more consumers shift to digital platforms, traditional TV networks like ABC are struggling to maintain their audience and their revenue streams.
Despite these challenges, Disney reported a 44 percent increase in adjusted per-share earnings for the October-December quarter, reaching $1.76. This was largely driven by a strong performance at the box office, particularly the success of the animated film Moana 2. Operating income at Disney's Entertainment unit, which includes film, television, and streaming, surged to $1.7 billion, nearly double from the previous year.
News Layoffs Hitting Hard
These layoffs are part of a broader restructuring effort at Disney, which has been reducing its workforce in recent years. The company has focused on shifting its investments toward streaming and sports content, both areas seen as key to its future growth.
Insider speculation about changes at ABC News has been circulating for weeks. Reports indicated that longtime anchor George Stephanopoulos, who also hosts This Week, has been "miserable" at the network. Sources suggested to The Wall Street Journal that recent issues, including the network's $16 million settlement with Donald Trump over Stephanopoulos' remarks about the president, have added to the tension. Stephanopoulos made headlines in the wake of the settlement, having mistakenly claimed on-air that Trump had been found "liable for rape," when the correct phrasing should have been that he was found liable for sexual abuse in connection with the claims of writer E. Jean Carroll.
Earlier this year, Disney laid off 75 staffers across its combined ABC News and local affiliate stations. These cuts were part of the company's broader restructuring efforts aimed at adjusting to the growing dominance of streaming platforms. As Disney works to streamline its operations, the future of its traditional broadcasting channels, including ABC, appears increasingly uncertain.
The layoffs at ABC News and Disney Entertainment Networks come amid similar moves by other major networks. CNN, for example, recently laid off nearly 200 employees as part of a shift to a more digital-focused model.
NBC News has also seen staff reductions, including the departure of longtime Meet the Press host Chuck Todd, who left to pursue his own podcasting venture.
