Disney is in massive cost-cutting mode, laying off nearly 6% of its ABC News staff and shuttering political forecasting site FiveThirtyEight (538) as part of a restructuring move.
About 200 employees, mostly from ABC News in New York, received immediate layoffs on Wednesday.
In addition, internal shakeups have seen “20/20,” “Nightline,” and “Impact x Nightline” merged into one, while “Good Morning America” lost its separate production team for its third hour.
Despite the move, Disney is reportedly struggling in an increasingly challenging entertainment industry.
Disney+ subscriptions continue to decline, while archrival Netflix has jumped nearly 60% after raising prices and continuing to dominate streaming.
Meanwhile, Disney shares are still flat at around $109 and down 4% over the past 12 months.
With the decline in Disney+ subscribers and pressure from declining cable TV viewers due to the cord-cutting phenomenon, is this just a business strategy or a sign of a bigger problem plaguing the entertainment giant?
