Disney is planning to cut about 200 positions or 6 percent of staff at ABC News Group and the Disney Entertainment Networks unit, the Wall Street Journal reported late on Tuesday night.
The layoffs are expected to be announced as early as Wednesday, the report said, citing one person familiar with knowledge of the cuts.
The ABC shows 20/20 and Nightline will be consolidating into one unit, the newspaper said, adding that ABC would also be eliminating the political and data-driven news site 538, which had about 15 employees.
Disney’s ABC News is also home to the popular news talk show Good Morning America.
WSJ said that all three hours of the branded shows will be consolidated under one person. Previously, the third hour had a separate production team.
The layoffs come as Disney deals with a decline in television viewing as consumers continue to shift toward streaming.
At the Disney Entertainment Networks unit there will be staffing reductions in program planning and scheduling, as per WSJ.
Disney reported a 44% jump in adjusted per-share earnings of $1.76 for the October-December quarter.
Disney is planning to cut about 200 positions or 6 percent of staff at ABC News Group and the Disney Entertainment Networks unit. Pictured from left, Michael Strahan, Robin Roberts and George Stephanopoulos
One of the major changes will be the merging of teams who produce GMA and GMA 3, above
ABC News network chief Almin Karamehmedovic, left. Debra OConnell, the Disney exec who oversees the network, right
Operating income at Disney’s Entertainment unit, which includes film, television and streaming, increased to $1.7 billion, nearly double from a year earlier, buoyed by the strong holiday box office performance of animated sequel Moana 2.
These cuts are part of broader staff reductions at Disney over the past few years, as the company restructures to prioritize investments in sports and streaming content.
There has been speculation that changes were afoot at ABC News for the best part of a month after insiders divulged to the New York Post how longtime anchor George Stephanopoulos is supposedly ‘miserable’ at the network.
ABC News like many other networks is seeking to address waning ratings.
CNN recently laid off close to 200 as part of a shift to a more digital-based model, while losing stalwart staffers like Oliver Darcy and Jim Acosta to digital-based independent ventures.
Layoffs were also seen at NBC News’ office at 30 Rock, which has lost longtime Meet the Press host Chuck Todd to his own podcasting endeavor as well.
Seemingly at a crossroads when it comes to strategy, ABC News is considering streamlining its highest-rated program as part of a pivot to streaming.
The news comes as the network, like many others, seeks to address waning ratings that have left GMA behind daytime rival Today
George Stephanopoulos and Robin Roberts are two of the network’s biggest names. Stephanopoulos is said be be on a contract worth between $15–18 million whilst Roberts earns $18 million annually
The teams producing Nightline and 20/20 are also set to be merged. Pictured anchors David Muir and Deborah Roberts
ABC’s Nightline is the news division’s late-night award-winning news program featuring anchors Juju Chang and Byron Pitts
Juju Chang is one of the current Nightline anchors. She previously worked as the news anchor for Good Morning America from 2009 to 2011
GMA is considered the channel’s ratings crown jewel alongside ABC World News Tonight with David Muir, above. He is reported to be receiving a salary of between $5-$7million per year
Stephanopoulos, who also hosts This Week, is said to be ‘miserable’ at the network
Disney is planning to cut about 200 positions or 6 percent of staff at ABC News Group and the Disney Entertainment Networks unit
Last month Debra OConnell, president of news group and networks visited Disney chief Bob Iger on the west coast.
Although the meeting was far from out of the ordinary rumors of looming layoffs left staffers feeling nervous.
In October, 75 staffers at Disney’s combined ABC News and local affiliate stations were laid off, as part of ongoing restructuring by the parent company.
As cable continues to be supplanted by streaming and other digital platforms over-the-air affiliates remain a key source of revenue, making a streamlined shift to a more digital future more prickly.
Stephanopoulos, who also hosts This Week, is said to be ‘miserable’ at the network after it paid President Donald Trump a $16 million settlement over his remarks about the president.
Stephanopoulos erroneously claimed on-air that the Donald Trump was found ‘liable for rape’. The correct phrasing would have been that he was found liable for sexual abuse in relation to the claims of the writer E Jean Carroll.