Disney is planning a restructuring of its television operation that’s expected to result in hundreds of layoffs and the consolidation of divisions, according to people familiar with the matter. Senior executives are currently working out details of the plan, which might not be finalized before the end of the year. It’s the latest in a series of reorganizations since Josh D’Amaro became chief executive in March.
Layoffs have already hit marketing, Pixar, ABC News and ESPN. On Tuesday, Disney laid off more than 300 people, most of whom work in human resources and information technology. Cuts are also in the works at Disney’s legal and global affairs unit, which has about 1,000 employees.
Most Hollywood studios have cut costs in recent years as they adjust to a world in which streaming profits are a fraction of what they earned from cable. D’Amaro has responded by pushing Disney to think of itself as a unified digital entertainment operation. Last month, he elevated former YouTube executive Adam Smith to chairman of streaming and named Silicon Valley veteran Karandeep Anand as Disney’s chief technology officer.
A primary goal for the TV reorganization is to structure the business in a way that makes sense for streaming customers. Disney President and Chief Creative Officer Dana Walden said the company is “centralizing as a television business, not a bunch of silos.” Disney Entertainment Television chairman Debra OConnell is spearheading the plan, which is expected to affect some executives who run units like ABC Entertainment, 20th Television, Hulu Originals, and National Geographic Content.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing