Disney TV Restructuring
Disney Restructures Television Division and Plans Hundreds of Job Cuts for Streaming Model
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Key Points
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The restructuring comes amid broader pressure on media companies: cord-cutting is eroding the profits of cable and broadcast networks, while streaming has not yet replaced those lost profits.
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Disney also cut several hundred jobs last year across film and television marketing, TV publicity, casting and development, according to Reuters.
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Disney’s Legal and Global Affairs organization is also preparing reductions; the roughly 1,000-person unit’s leader, Horacio Gutierrez, told employees it would become smaller.
Disney is restructuring its television business and planning hundreds of job cuts as it shifts away from traditional TV brands toward streaming. AdGully reports that the effort, led by Disney Entertainment Television Chairman Debra O'Connell, will consolidate divisions across ABC Entertainment, 20th Television, Hulu Originals, and Freeform. The move is part of CEO Josh D'Amaro's broader cost-cutting push, following recent layoffs of more than 300 people in human resources and IT.
The restructuring reflects a crisis facing all major media companies: cord-cutting has eroded cable and broadcast profits, but streaming hasn't yet replaced that lost revenue. Reuters reported that Disney cut several hundred jobs last year in film and television marketing, TV publicity, casting, and development. The company's roughly 1,000-person Legal and Global Affairs unit is also preparing cuts, with leader Horacio Gutierrez telling staff it would become smaller.
Why Disney Is Cutting Deep Into Television
Cable and broadcast networks are hemorrhaging money. Yahoo Finance explains that cord-cutting — people canceling cable subscriptions — has gutted the profits these networks once relied on. Streaming services like Disney+ haven't yet generated enough revenue to fill the gap.
This forces Disney to act. The company can't run two expensive businesses side-by-side — one dying, one not yet profitable. Consolidating divisions cuts overhead and speeds decision-making.
A Streaming-First Reorganization Across Key Divisions
The restructuring will reshape how Disney organizes its TV operations. Instead of separate fiefdoms around legacy brands like ABC or Freeform, the company will build around streaming. Indian Television reports that Debra O'Connell is leading the effort, which will affect executives across multiple units including ABC News.
This is a fundamental shift. Disney is saying: traditional TV networks are no longer our organizing principle. Streaming is. Hundreds of roles in development, casting, and executive ranks will disappear.
Broader Layoffs Signal a Painful Year Ahead
Disney's cuts are accelerating. The company has already eliminated more than 300 jobs in HR and IT. Last year it cut several hundred more in marketing, publicity, and development. These aren't isolated decisions — they're part of a systematic downsizing.
Even legal and corporate functions aren't safe. Horacio Gutierrez, who leads the 1,000-person Legal and Global Affairs unit, warned employees their department would shrink. The restructuring timeline remains uncertain, with finalization potentially delayed until later this year.
The Restructuring Still Faces Uncertain Timing
Barron's notes that Disney's TV business shake-up is still in development. The company hasn't finalized details or announced exactly how many jobs will disappear. Executives are still debating where cuts should fall and how to preserve content quality while slashing costs.
For employees, the wait is painful. Nothing is official yet, but the direction is clear: Disney is choosing streaming over traditional television, and hundreds of jobs hang in the balance.
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