Disney Set To Lay Off 200 Employees Amid Restructuring Plans

Popular entertainment company Walt Disney is planning to reduce its workforce by almost 6 per cent. About 200 employees will be laid off in its ABC News Group and Disney Entertainment Networks units.

The development, which was first cited by The Wall Street Journal (WSJ), comes amidst several restructuring efforts in the company. The shift represents a response to the recent declining influence of traditional cable television and the repositioning of consumer behaviour.

As the entertainment company adapts to a rapidly evolving media industry, the layoffs appear to be part of a broader strategy to reduce expenses and streamline operations.

Though Disney is yet to release an official statement on the layoff, WSJ noted that several key divisions are to be affected by the restructuring including the merging of ABC’s long-running news magazine programs, 20/20 and Nightline. The company is also planning to eliminate the unit operating FiveThirtyEight, the political and data analysis website.

Likewise, the production staff at Good Morning America is expected to be affected. The Disney Entertainment Networks division, which oversees cable channels such as FX, is likewise expected to witness the trend in its programming and scheduling operations unit.

Technext reported in February 2023 that Disney+ laid off 7,000 employees, roughly 4 per cent of its global workforce, as part of its restructuring plans in February 2023.

Over the past year, Disney’s stock has declined by almost 4 per cent, signalling investors’ concerns over its ability to manoeuvre the industry’s challenges. However, the company’s stock showed little improvement following on Wednesday.  

The layoff follows an industry-wide shift that has seen major media companies rethink their business models.