Disney Reportedly Plans Major Restructuring of Television Business

The Walt Disney Company is planning a significant restructuring of its television business that could involve consolidating divisions and result in hundreds of layoffs, The Wall Street Journal reported on Thursday, citing people familiar with the matter.

Details of the Plan

The proposed overhaul is reportedly being led by Disney Entertainment Television Chairman Debra O’Connell. According to the Journal's sources, the plan is still under development and may not be finalized before the end of the year.

The move represents the latest in a series of reorganizations at the media conglomerate as it navigates a challenging industry landscape. Disney did not immediately respond to a request for comment on the report.

Strategic Shift to Streaming

The restructuring aims to reorient the business around streaming customers rather than the legacy brands and structures built for linear television, the report added. This reflects a broader strategic pivot as consumer viewing habits shift away from traditional cable and broadcast channels.

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Several key divisions are expected to be affected by the changes, including the executive teams running:

• ABC Entertainment
• 20th Television
• Hulu Originals
• Freeform

Industry Context and Cost-Cutting

This potential overhaul comes as media companies across the industry cut costs to contend with the financial pressures of cord-cutting, which has eroded the profitability of their once-lucrative cable and broadcast networks. While streaming is the focus for future growth, it has not yet consistently replaced the profits lost from the decline of traditional television.

Disney has already implemented multiple rounds of job cuts over the past year to improve efficiency. Previous reductions have impacted its marketing divisions, Pixar, ABC News, and ESPN, among other departments.