Oct 1 (Reuters) – Walt Disney plans a restructuring of its television business that could result in hundreds of layoffs and the consolidation of divisions, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
Media companies have been cutting costs as cord-cutting shrinks their once-lucrative cable and broadcast networks, while streaming has yet to make up for the lost profits.
Disney did not immediately respond to a Reuters request for comment.
The plan is being led by Disney Entertainment Television Chairman Debra O’Connell and may not be finalized before the end of the year, the report said.
It is the latest in a series of reorganizations since former parks chief Josh D’Amaro became CEO in March, according to the report.
The overhaul aims to organize the business around streaming customers instead of brands built decades ago for linear television, and is expected to affect executives running units including ABC Entertainment, 20th Television, Hulu Originals and Freeform, the report added.
The company cut jobs last year, including several hundred employees in its film and TV marketing, TV publicity, casting and development divisions, Reuters reported.
Disney has already cut jobs in marketing, Pixar, ABC News and ESPN this year, and on Tuesday it laid off a few hundred employees, mainly in human resources and technology, a source told Reuters on Tuesday.
(Reporting by Akash Sriram in Bengaluru; Editing by Tasim Zahid)
