Disney (DIS) is eliminating 6% of staffers, or just under 200 employees, from its news and entertainment division, Yahoo Finance confirmed on Wednesday. 

The bulk of the cuts will impact ABC News, which is also shuttering its political and data-driven news site 538. Disney's ESPN first acquired 538 from Nate Silver in 2013 before it was transferred to the network side of the company five years later.

As part of the layoffs, first reported by the Wall Street Journal and the newsletter Status, production teams across "20/20" and "Nightline" will consolidate, along with the three hours of "Good Morning America's" branded shows. 

Disney stock was little changed on the news. Shares are down about 2% since the start of the year, lagging the broader S&P 500 (^GSPC).

"Rethinking the way we work to future-proof our team regrettably includes reductions to our extraordinary staff," Almin Karamehmedovic, president of ABC News, said in an internal memo viewed by Yahoo Finance.

The cuts come as Disney works to streamline operations in the midst of traditional television's rapid decline. “ABC News Group and Disney Entertainment Networks continually evaluates new ways to effectively manage resources and boost efficiencies," Karamehmedovic added. 

Since 2023, Disney has eliminated more than 8,000 roles in an effort to cut $7.5 billion worth of annual costs.

Reuters / Reuters

Disney, like other legacy media companies, has heavily invested in expensive streaming endeavors amid the mass exodus of pay TV consumers.

In its latest earnings release, Disney reported a 7% year-over-year decline in linear network revenue. Operating income for the division dropped 11%.

Prior to the cord-cutting phenomenon, linear advertising and cable affiliate fees had consistently boosted revenues. But as ad buyers now flee traditional TV channels in favor of digital options like streaming, companies are beginning to realize they may never realize those economics again.

These pressures have resulted in waves of layoffs across the industry as companies double down on streaming through newly launched ad-supported tiers, bundled offerings, and price hikes. 

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Disney management has continued to reiterate, however, its intention to hold on to traditional TV assets.

"Linear networks and streaming are in many ways two sides of the same coin because a lot of the content that we produce actually winds up in both locations," Disney CFO Hugh Johnston told Yahoo Finance last month.

"In many ways, we've kind of perfectly hedged the business," Johnston added. "A lot of our focus on cost is how do we get the right aggregate outcome rather than focusing on one side of the coin."

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.

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