Disney to consolidate TV divisions in major restructuring under new CEO

Key points

• Disney is consolidating its television divisions to better align with streaming customer preferences, according to the Wall Street Journal.
• The restructuring is expected to impact executives running units like ABC Entertainment, 20th Television, and Hulu Originals.
• Recent layoffs of over 300 jobs primarily affected human resources and information technology departments.
• CEO Josh D'Amaro's 'One Disney' strategy aims to integrate compatible businesses and reduce costs across the enterprise.
• Disney warned about these cost-cutting measures in its August earnings report, citing a need to reduce labor and SG&A expenses.

Background

This is the latest chapter in a series of reorganizations under CEO Josh D'Amaro, who took over in March 2026. Previous layoffs have already hit marketing, Pixar, ABC News, and ESPN. The company has also offered early-retirement buyout packages to longtime executives. Disney's stock has significantly underperformed the S&P 500 over the past decade, prompting a focus on cost reduction and adaptation to the streaming landscape.

How outlets are covering it

The Wall Street Journal emphasizes the consolidation of TV divisions and the potential impact on executives, while CNBC highlights the recent 300 job cuts in HR and technology as part of a broader cost-reduction strategy. Yahoo Finance notes that Disney's president described the layoffs as 'extremely painful' but necessary. All sources agree that these moves are part of D'Amaro's 'One Disney' strategy to streamline operations and prioritize streaming.

Why it matters

The restructuring signals a major shift in Disney's business model, moving away from traditional linear TV toward a streaming-centric approach. This could have significant implications for the company's financial performance and the future of its various media divisions.

What to watch

The restructuring plans are expected to be finalized by the end of 2026. Further layoffs may be announced as Disney continues to evaluate cost-reduction measures. The company will likely provide updates on the progress of its restructuring efforts in future earnings reports.