Disney Entertainment Television’s restructuring under Chairman Debra OConnell is becoming a budget exercise. Disney has handed managers targets for its next company-wide layoff round, with some teams asked to reach up to 20% in annual cost savings, according to Deadline.
The cuts are expected around early 2027, most likely January, and are intertwined with OConnell’s reorganisation. The TV networks unit of Disney Entertainment Television is expected to absorb a heavy share as the company keeps reducing its dependence on linear television.
Where the cuts are expected to land
Linear networks have been in retreat at Disney for several years. The company has already sold its 50% stake in A+E Global Media to Hearst for $1.2 billion, and the TV networks division is again seen as a serious target.
The moves being discussed include:
- Further consolidation of 20th Television with ABC and Hulu under Disney Television Group President Craig Erwich.
- A leaner senior layer at 20th Television after its absorption of Touchstone Television and ABC Signature.
- Closer integration of Hulu and Disney+ scripted programming teams.
- A decision on whether National Geographic Content remains a standalone division under OConnell.
Why this matters for the business
For producers and media planners, this is a sign of where Disney intends to concentrate spending. The reshaped studio is already pointed inward: 20th Television mostly supplies Disney platforms, with only a small third-party slate including CBS’s Tracker, Netflix’s Nobody Wants This and The Beast in Me, and Apple TV+’s Imperfect Women.
If 20th Television is folded more tightly into ABC and Hulu, external sellers may face fewer commissioning doors and a pipeline that favours owned-platform briefs. Media buyers should expect Disney to lean further into Hulu and Disney+ properties as linear ratings become less central to the pitch.
The timing is deliberate
A January announcement would come about 10 months after OConnell took the chairman role in March. That is not unusual; Netflix’s head of UCAN scripted, Jinny Howe, took nearly 14 months after assuming her role before announcing a divisional structure.
One confirmed piece is Joe Earley’s move to president of franchise and content strategy after serving as co-president of direct-to-consumer, creating a bridge between streaming and television as the reorg unfolds.
Disney’s voluntary early retirement programme is also softening the process. Deadline reports that more executives than expected took packages, which could reduce some forced reductions.
The structure is not final, but the direction is clear: fewer, more integrated content teams built around Disney’s streaming priorities.
Source: Deadline
