Disney Hit with Layoffs as CEO Seeks to Change Strategy
On Wednesday, Disney announced layoffs affecting approximately 140 employees from its Disney Entertainment Television division, representing about 2% of the workforce. The majority of cuts included positions at National Geographic, which saw the largest reduction with 60 staff members losing their jobs. Other impacted areas comprise local TV stations, Freeform, and marketing teams.
The layoffs are part of a broader cost-cutting strategy as Disney tries to manage its spending, especially after significant investments in streaming content. CEO Bob Iger has indicated a shift away from traditional pay-TV programming, a change driven by the company’s $7.5 billion cost-reduction plan.
Following previous layoffs at Pixar and other units, Disney’s workforce has already seen considerable reductions, totaling 220,000 globally over the past year. The latest cuts largely concentrate in the Los Angeles area, with additional reductions in New York City and Washington D.C.
Meanwhile, ABC News is facing potential changes as part of Disney’s ongoing budget slashing, particularly for “Good Morning America,” which may need to cut $19 million from its budget by the end of the fiscal year. Reports suggest the reductions will mainly affect behind-the-scenes staff rather than on-air talent.
Disney wielded the axe on Wednesday, laying off about 140 employees in Disney Entertainment Television.
The cuts amount to about 2 percent of the unit’s workers, according to Variety.
National Geographic, locally owned television stations, Freeform, and network teams focused on marketing and publicity took the brunt of the cuts.
National Geographic, acquired by Disney in 2019, played off 60 employees — the highest cut.
Maybe it’s not that plain and simple, but after agreeing to spend millions on two more Avengers movies, it’s disappointing Disney isn’t supporting those making programming about our actual planet.https://t.co/s5BulsCK87
— The A.V. Club (@TheAVClub) July 31, 2024
Disney CEO Bob Iger has said that Disney plans to cut its pay-TV content, particularly content “aimed at those traditional network[s],” after putting “too much” into streaming content.
As part of a $7.5 billion plan to cut costs, Pixar Animation lost 175 workers in May. Last year, Disney cut about 220,000 workers worldwide.
The cuts will fall mostly in the Los Angeles region, with some cuts in New York City and Washington, D.C., according to Deadline.
“Disney was hit with layoffs”?
Who hit them?
— GESSopines 🇵🇦🇺🇲 (@GESSopines) July 31, 2024
A report in the New York Post said Disney is not done yet.
ABC is expected to face cuts, including major changes at “Good Morning America,” the Post wrote, citing sources it did not name.
The Post report said “Good Morning America” has to achieve $19 million in cuts by the time Disney’s fiscal year ends on Sept. 30.
ABC News, ‘GMA’ staffers brace for layoffs as Disney demands budget slashes: sources https://t.co/e6rFWGkp5d pic.twitter.com/ZYX4pKFUcG
— New York Post (@nypost) July 31, 2024
Sources told the Post that cuts will not fall on the on-camera hosts, but instead on staffers.
“‘GMA’ is not doing quality stuff,” the Post quoted what it said was a former ABC News executive as saying.
“There’s not a lot of taped pieces. It’s more live hits, and there’s a lot of [segments] selling stuff in studio,” the source said.
ABC News is likely to freeze hiring and leave open positions vacant, a source told the Post.
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