Walt Disney Co. started laying off employees across its ABC Television Group on Thursday.
Of the division’s 9,000 employees, up to 200 are expected to be cut - but details of the cost-cutting effort are fluid and no final headcount for staff reductions has formally been determined.
Disney is aiming to achieve cost-savings and a restructuring as the television business has been under pressure from a decline in traditional viewing and the rise of streaming competitors like Netflix. In fact, Netflix poached ABC’s highest-profile producer, Shonda Rhimes.
Disney Channel and Freeform have lost roughly 4 million subscribers over the past three years, while ABC’s viewership among 18-49-year-olds was down last season. Additionally, the conglomerate's other major cable channels have struggled to find new hit shows. ESPN has already undergone two rounds of layoffs in recent years.
But ABC has boasted recent investments in talent and content — signing 'Lost' mega-producer Carlton Cuse and recruiting singer Katy Perry to serve as a judge on “American Idol” for a fee of $25 million for one season. The company is expected to make new hires that align with areas of future growth within the division, such as digital distribution.
Of the division’s 9,000 employees, up to 200 are expected to be cut - but details of the cost-cutting effort are fluid and no final headcount for staff reductions has formally been determined.
Disney is aiming to achieve cost-savings and a restructuring as the television business has been under pressure from a decline in traditional viewing and the rise of streaming competitors like Netflix. In fact, Netflix poached ABC’s highest-profile producer, Shonda Rhimes.
Disney Channel and Freeform have lost roughly 4 million subscribers over the past three years, while ABC’s viewership among 18-49-year-olds was down last season. Additionally, the conglomerate's other major cable channels have struggled to find new hit shows. ESPN has already undergone two rounds of layoffs in recent years.
But ABC has boasted recent investments in talent and content — signing 'Lost' mega-producer Carlton Cuse and recruiting singer Katy Perry to serve as a judge on “American Idol” for a fee of $25 million for one season. The company is expected to make new hires that align with areas of future growth within the division, such as digital distribution.
