Disney is gearing up to overhaul its extensive television division, a move that might lead to significant job cuts, according to reports.
Key executives at Disney are finalizing plans that involve merging various TV sectors and reducing staff numbers, as mentioned by the Wall Street Journal, with suggestions that the outcomes may not be in place by year’s end.
This shift is part of a broader series of reorganizations initiated by CEO Josh D’Amaro, who took the helm in March after managing the parks division.
Already, many departments including marketing, Pixar, ABC News, and ESPN have faced layoffs. Recently, Disney let go of more than 300 employees, primarily in human resources and IT.
Additional reductions are occurring within Disney’s legal and global affairs unit, which has around 1,000 employees. In a recent communication to staff, Disney’s chief legal and global affairs officer, Horacio Gutierrez, indicated that his office “will be a much smaller organization than it is today,” pointing to advancements in automation.
A principal aim of the TV unit’s reorganization is to align its operations more closely with the needs of streaming customers rather than sticking to traditional TV branding, as noted by the Journal.
Dana Walden, Disney’s President and Chief Creative Officer, announced on Thursday that the company is working to unify several divisions into a cohesive television business, instead of maintaining them as separate entities.
During a Bloomberg conference in Los Angeles, she emphasized the need for ongoing evaluation of organizational structure and size.
Walden’s colleague, Debra OConnell, the Chairman of Disney Entertainment, is leading this initiative. OConnell manages numerous properties including ABC Entertainment, 20th Television, Hulu Originals, Disney Kids & Family, National Geographic Content, and Freeform.
This restructuring is anticipated to affect some executives overseeing these areas, according to sources cited by the Journal.
Layoffs are also rumored to impact ABC News, which is part of OConnell’s responsibilities, as reported by the newspaper.
Additionally, ABC News’ “Good Morning America” is likely to undergo changes after losing its top position in the ratings to NBC’s “Today” after a 14-year run.
Requests for comments from Disney and ABC News went unanswered.
