Disney Plans TV Restructuring With Hundreds of Layoffs as Streamlining Continues
DIS is trading near its 52-week low of $92.185 (10% above the low).
Summary
Disney is planning a restructuring of its television operations that will result in hundreds of layoffs and consolidation of divisions, according to people familiar with the matter. The plan, spearheaded by Disney Entertainment Television chairman Debra OConnell, aims to centralize a business currently run as separate silos and align it with streaming priorities. Layoffs have already hit marketing, Pixar, ABC News, ESPN, and over 300 HR/IT roles this week, with further cuts expected in legal and global affairs. This follows CEO Josh D'Amaro's August acknowledgment of the stock's decline and his push for a unified digital entertainment operation. The restructuring signals continued cost-cutting as Disney adapts to lower streaming profitability compared to legacy cable.
At the time of this announcement, DIS was trading at $101.68 on NYSE in the Trade & Services sector, with a market capitalization of approximately $175.6B. The 52-week trading range was $92.19 to $117.09. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.