Disney laying off 6% workforce because of falling TV viewership
What's the story
Disney is planning to lay off nearly 6% of its workforce across two of its divisions, ABC News Group and Disney Entertainment Networks. As per the Wall Street Journal, the move comes as the entertainment giant continues to witness a decline in television viewership. The layoffs are expected to affect fewer than 200 employees across both units, with the bulk of the cuts hitting ABC News.
Consolidation efforts
ABC News shows to be consolidated
According to the report, several ABC shows including 20/20 and Nightline will be combined into a single unit. Disney also plans to combine its digital editorial and social teams with news gathering, shows, and owned stations. The WSJ also reported that all three hours of the popular news talk show Good Morning America, which is part of ABC News, will be consolidated under one leader. Right now, the third hour has a different production team.
Strategy shift
Disney's response to changing media landscape
The move comes as media companies are reworking their business strategies amid the ongoing shift of cable TV viewers to streaming platforms. Despite the challenges, Disney reported a 44% increase in adjusted per-share earnings of $1.76 for the October-December quarter. This indicates that while the company is struggling with its television viewership, it continues to do well financially overall.