Disney's Strategic Cuts: Adapting to the Streaming Era

Disney's recent layoffs, affecting approximately 200 employees across ABC News and Entertainment Networks, represent a strategic move by the company to adapt to the shifting media landscape and the rise of streaming services. The cuts, announced on Wednesday, March 4, 2025, are part of a broader effort by disney to reduce costs and streamline operations in the face of declining ratings and revenue in traditional cable channels.

The layoffs, which represent just under 6% of the combined staff at the two units, come as Disney grapples with the transformation of the media business, which faces a fast migration of viewers from linear TV to streaming-video services. While Disney operates streaming hubs such as Hulu and Disney+, it is also feeling the pressure of eroding economics in traditional TV, which relies on ad sales and transmission fees.

The cuts at ABC News and Entertainment Networks are not isolated incidents but part of a series of staff reductions that Disney has been implementing over the past few years. In May 2024, Disney cut 175 jobs from its Pixar unit, and in July 2024, another 140 employees were let go from Disney Entertainment Television. These layoffs, along with the recent ones, reflect Disney's commitment to making tough decisions to ensure the company's long-term sustainability and growth.

The layoffs at ABC News and Entertainment Networks have also led to structural changes within the divisions. For instance, ABC News is consolidating its news magazine shows "20/20" and "Nightline" into one unit, resulting in job cuts. Additionally, the political and data-driven news site 538, with about 15 employees, is being eliminated. All three hours of "Good Morning America" branded shows will be consolidated under one person, previously having separate production teams. At the Disney Entertainment Networks unit, there will be staffing reductions in program planning and scheduling.

These changes are part of Disney's effort to embrace the new media landscape and evolve along with it, as stated by Almin Karamehmedovic, president of ABC News. By making strategic decisions about its organization's future, Disney aims to continue serving its viewers while ensuring the company remains streamlined and sustainable. Despite the layoffs, Disney remains committed to local news and its talented teams across the country, as highlighted by Chad Matthews, president of ABC's station group.



The recent layoffs and restructuring efforts are expected to help Disney manage the shift in audience preferences from linear TV to streaming video services. By reducing costs and streamlining operations, Disney aims to improve its financial outlook and reach profitability in its streaming business. However, the full extent of these impacts will depend on how Disney manages the changes and adapts to the evolving media landscape.



In conclusion, Disney's recent layoffs at ABC News and Entertainment Networks are a strategic move by the company to adapt to the shifting audience preferences and the rise of streaming services. By reducing costs and streamlining operations, Disney aims to improve its financial outlook and reach profitability in its streaming business. However, the full extent of these impacts will depend on how Disney manages the changes and adapts to the evolving media landscape.