Disney’s Strategic Shift: ABC News Faces Significant Job Cuts Amid Streaming Surge

Disney is planning to cut around 200 positions at ABC News Group and Disney Entertainment Networks, linking these reductions to a shift towards streaming services and declining television viewership. The restructuring includes consolidating ABC shows '20/20' and 'Nightline', and eliminating the 538 news site.

In a strategic business move, Disney plans to reduce its workforce by cutting approximately 200 positions at ABC News Group and the Disney Entertainment Networks unit, as reported by the Wall Street Journal on Tuesday. This decision comes amid an industry-wide pivot towards streaming services.

The report highlights that these layoffs are anticipated to be announced shortly. Changes include consolidating ABC's prominent shows, '20/20' and 'Nightline', under one unit. Additionally, the political and data-driven site 538 will be closed, affecting about 15 employees. This restructuring also impacts staffing in program planning and scheduling at Disney Entertainment Networks.

Despite these cuts, Disney announced a significant financial milestone with a 44% rise in adjusted per-share earnings for the last quarter. This gain is largely attributed to the successful holiday box office run of 'Moana 2', indicating robust performance in their streaming and film sectors.

(With inputs from agencies.)