Disney (Say) Eliminates 6% of staff members, or just under 200 employees, from their division of news and entertainment, confirmed Yahoo Finance on Wednesday.
Most of the cuts will have an impact on ABC News, which will also close its political and data -based information site. Before being transferred to the company’s network side Five years later.
As part of the dismissals, reported for the first time by The Wall Street Journal and the Newsletter statusProduction teams through “20/20” and “Nightline” will consolidate, as well as the three hours of brand “Good Morning America”.
Disney’s stock has changed little to the news. The shares have been down approximately 2% since the start of the year, late on the wider S&P 500 (^ GSPC).
At the end: March 7 at 4:00 p.m.
Say ^ GSPC
“Rethinking the way we work at the end of our team unfortunately understands the reductions of our extraordinary staff,” said Almin Karamehmedovic, president of ABC News, in an internal note seen by Yahoo Finance.
The cuts come while Disney works to rationalize operations in the middle of the rapid drop in traditional television. “ABC News Group and Disney Entertainment Networks are continuously evaluating new ways of effectively managing resources and stimulating efficiency,” added Karamehmedovic.
Since 2023, Disney has eliminated more than 8,000 roles in order to cut $ 7.5 billion For annual costs.
Disney, like the other inherited media companies, has invested strongly in expensive streaming efforts in the middle of the mass exodus of television consumers.
In its latest version of the resultsDisney declared a drop of 7% on the other of the revenues of the linear network. The operating result of the division dropped by 11%.
Before the cord cutting phenomenon, linear advertising and cable affiliation costs had constantly increased income. But as advertising buyers are now fleeing traditional television channels in favor of digital options such as streaming, companies are starting to realize that they might never make these savings again.
These pressures resulted in waves of layoffs through industry while businesses double streaming through levels supported by advertising,, grouped offeringsAnd price increase.
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Disney Management continued to reiterate, however, its intention to keep traditional television assets.
“Linear networks and streaming are in many ways two sides of the same room because a lot of content that we produce in fact ends in both places,” said CFO Disney, Hugh Johnston, Yahoo Finance last month.