Full Breakdown
Disney Plans Major Restructuring of Television Business Amid Ongoing Cost Cuts
By Drooid · · How we work
Disney Announces Television Restructuring
On October 1, Disney announced that it is preparing a restructuring of its television operations that could lead to “hundreds of layoffs” and the consolidation of multiple divisions. The plan, overseen by Disney Entertainment Television Chairman Debra O’Connell, is expected to reorganize units such as ABC Entertainment, 20th Television, Hulu Originals, Disney Kids & Family, National Geographic Content and Freeform. Sources told the *Wall Street Journal* that the overhaul may not be finalized before the end of the year.
Background: Cost Pressures and Prior Reorganizations
The restructuring follows a broader industry trend in which cord-cutting has eroded revenue from traditional cable and broadcast networks while streaming services have yet to fully offset the loss. Disney has already reduced staff in several areas this year, including marketing, Pixar, ABC News and ESPN. Earlier in the year the company cut several hundred employees in film and TV marketing, publicity, casting and development, according to Reuters.
Scope of the Planned Changes
The *Wall Street Journal* report indicates that the reorganization will affect executives running the listed units and is likely to impact ABC News, which has seen declining ratings. On Tuesday, Disney laid off a few hundred employees, primarily in human resources and information technology, as reported by Reuters.
Official Response and Internal Communications
Disney did not immediately respond to Reuters’ request for comment. The internal memo from Gutierrez provides the only direct corporate communication about the expected downsizing of his department.
Potential Impact on Employees and Units
Analysts note that the consolidation could streamline decision-making around streaming customers, but the projected “hundreds of layoffs” will likely affect a broad cross-section of staff, from creative divisions to technical support. The move underscores Disney’s ongoing effort to align its legacy television assets with a streaming-first strategy while managing the financial pressures of a shifting media landscape.