Disney to Restructure Television Division Amid Hundreds of Job Cuts
Disney (DIS) is planning a major restructuring of its television division, a move that could result in hundreds of job cuts. The Wall Street Journal reported that the restructuring, led by Disney Entertainment Television Chairman Debra O’Connell, aims to reorganize the business around streaming customers. The changes are expected to impact leaders of ABC Entertainment, 20th Television, Hulu Originals, and Freeform. The final plan may not be announced until the end of the year.
This restructuring is the latest in a series of organizational changes since Josh D’Amaro became CEO in March. Disney has already cut jobs this year in various departments, including marketing, Pixar, ABC News, and ESPN. On Tuesday, the company laid off a few hundred employees, primarily in human resources and technology.
Despite the layoff news, Disney’s financial performance has been solid. The August earnings report showed a 21% rise in total segment operating income and a 7% revenue growth. The Experiences segment brought in a record $10 billion, and global guests rose by 4%. Streaming services Disney+ and Hulu posted a 13% operating margin last quarter, with management expecting double-digit margins for fiscal 2026.
Disney also plans to return more cash to shareholders, raising its buyback target to at least $9 billion for fiscal 2026. However, challenges remain, including underperforming films and the potential distractions caused by cost-cutting measures. The next earnings report in November will be closely watched to see how the TV restructuring unfolds.