Disney lays off around 6% staff at ABC News, Disney Entertainment Networks

In a major update, Disney has confirmed cutting down nearly 6 percent of staff members across the Disney Entertainment Networks as well as ABC News units.

Richard Horrmann, senior vice president of strategic communications for Disney Entertainment Television, told USA Today on Wednesday that this will directly affect less than 200 employees of the company, which represent under 6 percent of the total workers at ABC News Group and Disney Entertainment Networks.

Other key developments

Apart from the layoffs, Disney is also planning to dissolve the political polling website 538, besides merging shows like Nightline, 20/20 and Impact x Nightline.


The data-driven news site 538 had nearly 15 employees, according to The Wall Street Journal.

Horrmann shared that the staff members who have been laid off were notified about the company's decision on Wednesday. He shared that the majority of them belonged to ABC News, while most of them were working in New York.

"While winding down the 538 brand, ABC News will continue to provide best-in-class polling and political data analysis that it has offered for decades," USA Today quoted Horrmann as saying.

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The official stated that the company "worked hard" to lower down the number of employees affected by the decision "as much as possible". Horrmann added that Diney is evaluating new methods to manage resources "effectively" and "boost efficiencies."

Why the layoffs?

This is the latest of several layoffs that have taken place at Disney during the last few years. Like its competitive entertainment companies, Disney is reportedly eying ways to save on the core business and spend more on entertainment and sports content to compete in the market.

As per The Wall Street Journal report, ratings and revenue of all cable channels have dropped down in recent times with people avoiding cable packages. Advertisers are shifting the gear towards digital platforms and streaming services.

Changes at Good Morning America

From now onwards, all the three hours of Good Morning America branded shows will be overseen by a single person. Earlier, the third hour used to have its own production team.

Horrmann shared that at the head position will be Simone Swink, who has been part of the programme since 2010.

At Disney Entertainment Networks unit, staff reductions will be there in scheduling and program planning. It is home to broadcast networks along with cable channels like Freeform and FX.

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This comes after the company reported a 44 percent increase in its adjusted per-share earnings of $1.76 during the October-December quarter.

On Wednesday morning, Disney's stock price was at around $109.

FAQs

1. When will the layoffs come into effect?
The layoffs at Disney have been announced to the affected employees on Wednesday itself.

2. How many people are affected by layoffs at Disney?
About 200 employees have been fired by the company, as per reports.