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Disney Plans Major TV Division Restructuring, Hundreds of Jobs at Risk
Summary
The Walt Disney Company is set to overhaul its television business by consolidating divisions, a move expected to result in hundreds of layoffs as part of a broader cost-cutting drive. Disney shares fell more than 3% on the report.
The Walt Disney Company is planning a significant restructuring of its television business that is expected to result in hundreds of layoffs and the consolidation of several divisions, The Wall Street Journal reported Thursday, citing people familiar with the matter. The move is the latest step in a broader cost-cutting effort and sent company shares lower in afternoon trading.
Sweeping Overhaul to Centralize TV Business
The restructuring, led by Disney Entertainment Television chairman Debra OConnell, aims to merge units that have historically operated as separate entities. The plan will affect a broad portfolio that includes ABC Entertainment, 20th Television, Hulu Originals, Disney Kids & Family, National Geographic Content, and Freeform.
Speaking at a Bloomberg conference on Thursday, Disney President and Chief Creative Officer Dana Walden framed the initiative as a strategic necessity. "We will be taking a bunch of divisions that have been run separately and centralizing as a television business, not a bunch of silos," Walden stated, adding that "there is a need to constantly evaluate how you’re structured."
According to the WSJ's sources, the overhaul will likely impact executive leadership roles that oversee programming for streaming services like Disney+ and Hulu, as well as for traditional linear channels. ABC News is also expected to face further staff reductions. Senior executives are still finalizing the details, which may not be completed before the end of the year.
AdMarket Reaction and Broader Context
Investors reacted to the news by selling off the company's stock. Shares of Walt Disney Co. (NYSE: DIS) were trading down 3.03% at $101.72 on Thursday afternoon, near a session low of $101.39.
This overhaul is part of a wider cost-saving campaign under CEO Josh D’Amaro. The company recently concluded a voluntary early-retirement program and reportedly waited to assess its uptake before proceeding with the TV restructuring. This follows another round of layoffs on Wednesday that cut over 300 jobs, primarily in human resources and IT. Including earlier reductions, total job cuts at Disney in 2026 have surpassed 1,500 positions, according to a report from Deadline.
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