Disney TV Reorg Chatter Heats Up As Next Wave Of Layoffs Draws Near

The long-awaited restructuring of Disney Entertainment Television under new Chairman Debra OConnell is starting to get real. As reported on Monday, Disney has initiated the next round of company-wide layoffs by handing managers targets for the size of the cuts they need to make, with some asked to achieve as much as 20% in annual cost savings.

That round, whose timing looks like early 2027, likely January, is expected to be intertwined with OConnell’s reorg. Areas seriously impacted by layoffs are believed to include the TV networks division of Disney Entertainment Television, which already has been the subject of major cuts over the past couple of years as Disney is moving to decrease its dependance on the declining linear TV business. (The company recently sold its 50% stake in A+E Global Media to Hearst for $1.2B.)

Nothing is imminent, and OConnell has kept her plans close to the vest, leaving Hollywood guessing about what the new structure would look like. That has not stopped people from speculating about potential moves.

There has been chatter about further consolidation of 20th Television and ABC/Hulu.

In her first major executive move after being named Chairman of Disney Entertainment in March, OConnell added 20th Television to the purview of Disney Television Group President Craig Erwich, who already had been overseeing ABC Entrainment and Hulu Originals, with 20th Television President Karey Burke reporting to him.

With 20th Television increasingly focused on supplying Disney platforms, integrating the two areas would not be unreasonable. (The studio, whose predecessor 20th Century Fox Television was a leading seller to everyone, has a small third-party business with such series as CBS’ Tracker, Netflix’s Nobody Wants This and The Beast In Me and Apple TV’s Imperfect Women.)

There had been speculation about Burke potentially expanding her turf and what the future holds for Erwich and his top lieutenant Simran Sethi, President, Scripted Programming, Hulu Originals and ABC Entertainment. Despite the background noise, especially around Sethi, it’s been business as usual for the duo who have been evaluating scripts and making decisions.

Industry insiders point out that, after absorbing Touchstone Television and then ABC Signature, 20th Television’s senior executive ranks under Burke had naturally expanded over the years, so streamlining the team via layoffs may be in the cards.

Besides FX Networks, which sits outside of OConnell’s domain, with Chairman John Landgraf reporting to Disney President and Chief Creative Officer Dana Walden, the Disney cable networks have been battered by deep cuts. While Freeform was folded into Erwich’s and by extension Sethi’s portfolio awhile back, National Geographic Content, led by President Courteney Monroe, has remained a separate unit reporting to OConnell. It will be interesting to see if that will remain the case in the new structure if Nat Geo is gutted by layoffs.

Another area drawing speculation is getting content teams working on Hulu and Disney+ programming integrated in some way, with someone that has expertise in both, like former Fox executive Charlie Andrews, currently EVP at Disney+/Disney Channel-focused Disney Branded Television, potentially getting a bigger role.

One piece of OConnell’s structure was recently revealed when Joe Earley, previously Co-President, Direct-To-Consumer for Disney Entertainment, reporting to Walden, moved to OConnell’s Disney Entertainment Television group to take on the role of President, Disney Entertainment Television Franchise and Content Strategy.

However the reorg shakes out, the cuts across Disney Entertainment Television are expected to be substantial, alleviated in part by Disney’s voluntary early retirement offers that I hear more executives than expected took across the entire company.

As for the timing of OConnell’s restructuring, while it feels like it’s been taking forever, if it comes in January as rumored, that would be about 10 months after OConnell was named Chairman of Disney Entertainment Television. That is not out of norm: Jinny Howe, Netflix‘s Head of UCAN (U.S.-Canada) Scripted Series, just announced the structure of her division almost 14 months after she took over.