Key facts
- Disney plans to restructure its television business, potentially leading to hundreds of layoffs.
- The overhaul aims to organize the business around streaming customers instead of linear TV brands.
- The plan is led by Disney Entertainment Television Chairman Debra O'Connell.
- The restructuring may not be finalized before the end of the year.
- The overhaul is expected to affect executives at units including ABC Entertainment, 20th Television, Hulu Originals, and Freeform.
Walt Disney is planning a significant restructuring of its television business, which could result in hundreds of layoffs and the consolidation of divisions, the Wall Street Journal reported on Thursday, citing people familiar with the matter. The move comes as media companies face declining profits from traditional cable and broadcast networks due to cord-cutting, with streaming revenues not yet fully compensating for the losses.
The plan is being spearheaded by Disney Entertainment Television Chairman Debra O'Connell and may not be finalized until the end of the year. This initiative is part of a broader series of reorganizations since Josh D'Amaro became CEO in March. The overhaul's objective is to shift the business's focus from brands developed for linear television decades ago to organizing around streaming customers. The report indicates that executives overseeing units such as ABC Entertainment, 20th Television, Hulu Originals, and Freeform may be impacted.