A new series of ABC television layoffs are reportedly on the way.
A recent report claims that Walt Disney Co (NYSE:DIS) is planning to layoff up to 300 employees in an effort to cut costs. The ABC television layoffs are set to represent 10% of the network’s annual costs.
According to these reports, Disney may start the ABC television layoffs in September. The layoffs are also going to result in a restructuring at the network. Those that will be affected by it include the broadcast network, local television stations and ABC News.
The report claims that Ben Sherwood, President of the Disney/ABC TV Group, is working on the layoff plans. He will show these plans to Disney CEO Robert Iger in the next few weeks. ABC employs a total of 10,000 employees. This means that the ABC television layoffs may affect up to 3% of the company’s employees, reports Fortune.
The ABC television layoffs also come just a couple of weeks after the company lost content creator Shonda Rhimes to Netflix, Inc.(NASDAQ:NFLX). Rhimes is responsible for shows such as Grey’s Anatomy, Scandal and How to Get Away with Murder. Her studio will continue to support these shows after her move to Netflix.
It isn’t just ABC television layoffs that Disney has been looking at to cut costs. Earlier this year it was announced that ESPN was laying off 100 employees to save money. These layoffs included several on-air personalities.
DIS stock was down 1% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
