Walt Disney Co. is set to initiate a new wave of job reductions within its television division, a move aimed at streamlining operations in a sector that has faced significant challenges in recent years. According to sources familiar with the situation, the company plans to cut approximately 140 positions, which constitutes about 2% of its workforce at Disney Entertainment Television.
The layoffs are expected to primarily impact networks such as National Geographic and Freeform, both of which are undergoing substantial programming cutbacks. Additionally, Disney’s ABC stations will also experience job losses as part of this restructuring effort.
Since returning as CEO in November 2022, Bob Iger has focused on reducing costs across the company, having already eliminated over 8,000 positions and slashed billions from the budget. Disney is currently navigating the delicate balance between investing in its streaming services and managing the decline of its traditional cable networks, which, despite their struggles, continue to generate significant profits.
Sources indicate that National Geographic will see around 13% of its workforce affected by these layoffs. The network, known for its in-depth documentaries and educational programming, has already reduced its scripted offerings to a select few shows, including the acclaimed series “Genius: MLK/X.”
Freeform, previously known as ABC Family, has historically catered to a teenage audience with popular series such as “Grown-ish” and “Pretty Little Liars.” However, with the ongoing shift in viewership preferences, many teens have migrated away from cable television in favor of streaming platforms, prompting Freeform to reevaluate its programming strategy.
In addition to the cuts in television programming, Disney is also making reductions in its marketing and publicity teams. These changes come as part of a broader strategy to enhance efficiency and adapt to the evolving media landscape.
Despite these challenges, shares of Disney, headquartered in Burbank, California, have shown resilience, rising by 3.9% this year as of the latest market close in New York.
In the most recent fiscal quarter, Disney’s entertainment-focused television networks accounted for approximately 12% of the company’s total revenue, excluding earnings from its sports division, which includes ESPN. As Disney prepares to report its fiscal third-quarter results next week, investors and analysts alike will be closely monitoring the impact of these job cuts and the company’s overall financial health.
The ongoing transformation within Disney’s television division reflects broader trends in the entertainment industry, where traditional cable networks are grappling with declining viewership and revenue as audiences increasingly turn to streaming services for their content consumption.
As the company navigates these turbulent waters, the strategic decisions made now will likely play a crucial role in shaping its future direction and success in an ever-evolving media landscape.
