Disney plans ABC job cuts

ABC’s Scandal is from Shonda Rhimes, who has joined Netflix

The Walt Disney Company is planning to cut up to 300 staff at the Disney-ABC Television Group, according to US reports.

The cuts, first reported by The Wall Street Journal (WSJ), are set to come as part of the group’s plans to reduce its annual costs by 10% by the end of Disney’s fiscal year next month.

The restructuring operation is expected to result in hundreds of layoffs at the group, which houses The Walt Disney Company’s entertainment and news TV properties, TV stations group and radio business.

This includes ABC Studios, the ABC network, Disney Channels Worldwide, cable network Freeform and Disney Media Distribution. Around 9,000 people are employed across the whole group, which is said to have been tasked with modernising its operations.

The WSJ has reported that the majority of the cuts will fall on the ABC network, ABC Studios, ABC News and local television stations. Disney Channel and Freeform will also see their workforces reduced, according to the report.

The news comes as traditional TV companies face greater competition from digital players such as Netflix, with the latter recently poaching Scandal creator Shonda Rhimes from the Mouse House as part of a long-term deal with the streaming company.

This came a week after Disney said it would be pulling its movies from Netflix in preparation for the launch of its own SVoD service, further escalating tensions between the two companies.