Walt Disney Co. Announces Layoffs at ABC Television Stations and News Division

In a significant move to streamline operations amid challenging market conditions, the Walt Disney Co. has cut 75 positions at its ABC television stations and news division. This reduction affected staff across ABC News and the company’s eight owned and operated broadcast outlets, such as KABC in Los Angeles. Notably, on-air reporters or anchors have not been impacted by these layoffs, according to a source familiar with the proceedings who requested anonymity as they were not permitted to discuss the matter publicly.

Describing the layoffs as “surgical” in nature, the network clarified that no local or network programs would be axed as a result. “As we look to the future and refine a team capable of excellence in reporting and delivering high-quality content, we must sometimes make difficult decisions,” said ABC News President in a memo to staff announcing the changes.

This development comes on the heels of another cost-saving measure announced by Paramount Global, aimed at reducing expenses by $500 million annually. ABC News’ parent company, Disney, headquartered in Burbank, California, has been feeling the financial pressure exacerbated by the industry’s broader shift towards streaming services. Earlier this year, in May, Disney also implemented significant layoffs affecting 175 jobs at Pixar and another 140 at Disney Entertainment Television in July.

Disney has been actively working towards reducing its workforce, with an initial target of cutting 7,000 jobs to save costs and increase profitability of its streaming ventures, a goal which has now been revised to 8,000. Television news, both at local and national levels, is bracing for further layoffs as audiences continue to migrate to digital streaming platforms.

Despite making more news content available online, networks are struggling to attract the same viewer numbers or advertising revenues as traditional television broadcasts. This trend is forcing companies like Disney to adapt their strategies. The Walt Disney Co. has been focusing on expanding its streaming platforms, including Hulu and Disney+, and is planning to launch an ESPN stand-alone service as it navigates the changing media landscape.

Chad Matthews, President of ABC’s station group, acknowledged in a memo to employees that the industry is undergoing a transformation of unprecedented scale, stating, “While we’re not immune to the pressures facing this business today, we have been strategic in our decisions to position the organization for future success.”

The affected employees were informed of the layoffs on Wednesday, and the cuts were reportedly balanced between the national news division and the local media arms, with no significant public-facing roles being diminished as a result.