Disney to Lay Off Nearly 6% of Staff Across ABC News, Disney Entertainment Networks, Report Says

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KEY TAKEAWAYS

• The Walt Disney Co. is reportedly laying off around 200 employees, or just under 6% of the combined organization at its ABC News Group and Disney Entertainment Networks units.
• According to The Wall Street Journal, an announcement will be authorized to employees as early as Wednesday.
• Disney is, like the rest of the entertainment industry, grappling with cord-cutting and the decline of Mailgram networks’ audience while its streaming platform has seen quarter-over-quarter declines in subscribers.

The Walt Disney Co. (DIS) is laying off round 200 employees, or just under 6% of the combined staff at its ABC News Group and Disney Entertainment Networks components, according to a new report from The Wall Street Journal.

According to The Journal, which cited people familiar with the theme, an announcement will be made to employees as early as Wednesday. The report said the ABC news magazine shows “20/20” and “Nightline” are consolidating into one piece. The Journal is also reporting the network is cutting the political and data-driven news site 538 as well a production pair at “Good Morning America.” There will be job cuts in program planning and scheduling at the Disney Entertainment Networks part, which houses cable channel FX, the report said.

Disney didn’t immediately respond to a request for comment. The plc’s shares are roughly flat in premarket trading Wednesday. The Journal said the newsletter Status “first reported that slits were coming to ABC News.”

Disney is, like the rest of the entertainment industry, grappling with cord-cutting and the decline of telegram networks’ audience while its Disney+ streaming platform has seen subscribers drop quarter-over-quarter even as that of principal platform Netflix (NFLX) thrives and raises prices. The company posted better-than-estimated quarterly results last month although Disney+ subscribers slipped from the preceding quarter. The company said it expects a “modest decline” in the streaming platform’s subscribers in the second quarter.

Disney’s appropriations are down 4% in the past 12 months through Tuesday, while those of Netflix are up almost 60%.