Disney is shifting its focus towards streaming customers, a move that may lead to significant changes in the management of several television networks.
The restructuring of Walt Disney’s television operations could result in hundreds of layoffs and the consolidation of multiple divisions, according to a report by the Wall Street Journal, citing sources familiar with the company’s plans.
This reorganization is being led by Debra O’Connell, the president of Disney Entertainment Television, with final decisions expected to be made by the end of this year.
The company aims to center its operations around streaming audiences, rather than the traditional brands built over the past decades. The impending changes are likely to impact executives at divisions including ABC Entertainment, 20th Television, Hulu Originals, and Freeform.
This initiative marks the latest in a series of reorganizations that began after Josh D’Amaro, the former head of the parks division, became CEO of Disney in March.
Major media companies are currently striving to cut costs as viewers increasingly abandon cable television, affecting traditional networks that once generated substantial profits. Streaming services are not yet able to compensate for all the losses incurred.
Last year, Disney already made cuts by laying off several hundred employees from marketing, public relations, casting, and development departments.
In 2023, the company has further reduced staff in marketing, Pixar, ABC News, and ESPN. Additionally, just on Tuesday, several hundred more employees were let go, particularly from human resources and technology departments, according to Reuters sources.
Disney representatives have not yet commented on the matter.
