Disney is cutting nearly 200 jobs, or roughly 6% of its staff in the news and entertainment division, as part of a broader effort to streamline operations in response to changing media consumption habits.
This restructuring primarily affects ABC News and includes the closure of FiveThirtyEight, the data-focused political analysis site once known for its prominence.
Majority of Cuts at ABC News
The majority of the layoffs are concentrated at ABC News, where production teams for programmes such as 20/20, Nightline, and Good Morning America (including GMA3 and overnight broadcasts) will merge as part of the restructuring.
This move aligns with Disney’s broader strategy to respond to a rapidly changing media environment. ABC News President Almin Karamehmedovic addressed the impact of these cuts in an internal memo,
“Rethinking the way we work to future-proof our team regrettably includes reductions to our extraordinary staff.” He emphasised the company’s ongoing efforts to streamline resource management.
Meanwhile, FiveThirtyEight, the data-driven political site founded by Nate Silver, will be shut down. The site is known for its detailed election forecasts, had been part of Disney’s broader media portfolio since being acquired by ESPN in 2013 and later moved to ABC News in 2018, but struggled to find a stable role within the company.
The Broader Industry Context
Disney’s latest round of layoffs is part of an ongoing series of cost-cutting measures the company has undertaken over the past two years. Since 2023, Disney has eliminated over 8,000 positions as part of a broader $7.5 billion cost-reduction plan.
The company cut 300 corporate jobs in September 2024, and in October, ABC News made additional layoffs, cutting 75 positions. The restructuring follows a decline in revenue from traditional television, with Disney reporting a 7% drop in linear network revenue in its most recent earnings report.
Operating income for the division also fell 11%. The continued shift of advertising pounds to digital platforms has put further pressure on traditional media companies.
Across the industry, layoffs have become more prevalent, with CNN cutting 210 jobs in January 2025, the Washington Post eliminating just under 100 positions, and Meta reducing its workforce by 3,600 employees.
Disney’s Strategy Moving Forward
Disney’s commitment to both traditional television and streaming remains firm, despite the ongoing decline in linear TV. Chief Financial Officer Hugh Johnston clarified the company’s strategy,
“Linear networks and streaming are in many ways two sides of the same coin because a lot of the content that we produce actually winds up in both locations.”
He further explained that Disney’s cost-cutting efforts are focused on achieving optimal results across all platforms,
“A lot of our focus on cost is how do we get the right aggregate outcome rather than focusing on one side of the coin.”
Conclusion
The layoffs and the closure of FiveThirtyEight reflect Disney’s response to the ongoing shifts in the media landscape. Companies across the industry are adjusting to the changing environment, with a continued decline in linear television revenues and the rise of digital platforms.
Disney’s dual focus on traditional TV and streaming platforms remains, though its cost-cutting measures are expected to persist as it faces the future of entertainment.