By George Glover
The Walt Disney Co. is set to lay off more cable-channel employees -- yet another sign the entertainment company is prioritizing streaming over what was once its core business.
Disney is letting go of about 200 workers across ABC News and its Disney Entertainment Networks unit, The Wall Street Journal reported late Tuesday, citing a person familiar with the matter. The cuts could be announced as early as Wednesday, per the outlet.
Disney didn't immediately respond to a request for comment from Barron's. The stock was edging up 0.3% in premarket trading Wednesday at $109.36.
The laid-off employees could justifiably see themselves as streaming-wars victims, with the House of Mouse looking for ways to save cash so it can plow more money into its Disney+ platform.
It makes sense as a strategy, as cord-cutting reshapes the TV business. Analysts forecast that revenue for the company's linear networks division, which includes its cable channels, will drop 8.6% to $2.39 billion in 2025, according to FactSet consensus estimates, while streaming revenue is expected to rise 9.8% to $6.67 billion.
Disney will have to splash the cash to ensure growth, though. Live sports look set to be the next streaming battleground, and rights fees aren't cheap. Last year, Netflix forked out more than $5 billion so it could start airing WWE's Monday Night Raw wrestling show, and Disney will have to spend money on sports content of its own if it wants to compete.
Disney stock could do with a boost -- shares have slid 2.1% this year due to mediocre future earnings guidance. The benchmark S&P 500 index is down 1.8% in 2025.
Write to George Glover at george.glover@dowjones.com
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March 05, 2025 07:53 ET (12:53 GMT)
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