ABC News has begun implementing significant changes as part of a major restructuring effort.
Employees were seen packing up their desks on Wednesday following an announcement
that around 200 employees across the network’s news division and Disney Entertainment Networks would be laid off.
These cuts are part of Disney’s ongoing efforts to streamline operations, a move that has caused considerable unrest among the staff.
In a memo sent out to employees, Almin Karamehmedovic, president of ABC News, confirmed the layoffs, attributing them to the need to adjust to an evolving media landscape.
He explained that the restructuring was necessary to ensure the network’s competitiveness and position itself as a leading news organization,
particularly in the increasingly important digital space.
“We’ve often talked about streamlining our operation to best serve our viewers and continue to position ourselves as a leading news organization,” Karamehmedovic wrote. “Rethinking the way we work to future-proof our team regrettably includes reductions to our extraordinary staff.” He acknowledged the difficulty of the decision, expressing his gratitude and pride in the network’s team.
The layoffs will be spread across Wednesday and Thursday, with various departments affected. Staff at World News Tonight are also among those who will face cuts. Additionally, the restructuring involves a significant merger between Good Morning America (GMA) and its third hour, GMA3, which will now operate as a single production unit. This consolidation is intended to streamline operations and reduce costs.
One of the most notable casualties of this cost-cutting initiative is the popular data news site FiveThirtyEight, which was founded by Nate Silver. Known for its accurate election predictions, FiveThirtyEight will be shut down entirely, with all 15 employees losing their jobs. This move signals a broader shift in priorities, as Disney reallocates resources from traditional operations toward digital and streaming platforms.
The announcement has led to significant dissatisfaction among staff, particularly those at lower salary tiers. Sources have reported that many employees feel that the layoffs unfairly target those at the bottom of the pay scale, while top anchors like Robin Roberts, George Stephanopoulos, and Michael Strahan continue to command multi-million-dollar salaries. The discrepancy has fueled resentment, as staffers wonder why the network’s highest-paid talent haven’t faced cuts or pay reductions.
ABC News is also facing ongoing financial challenges, as the company grapples with the shifting landscape of traditional television. The decline of linear TV and the rise of streaming services have forced media companies to adjust their strategies, leading many to question whether the industry can continue to support the large salaries of its top talent.
In addition to restructuring, ABC News has faced turmoil regarding recent legal issues. The network was forced to settle a defamation lawsuit filed by former President Donald Trump. The lawsuit stemmed from an incorrect on-air statement made by Stephanopoulos, who had claimed that Trump was found liable for rape in a legal case involving journalist E. Jean Carroll. Trump was actually found liable for sexual abuse and defamation, not rape. As part of the settlement, Stephanopoulos was required to publicly apologize, a move that has reportedly left him feeling frustrated and dissatisfied with his position at the network.
This legal matter has contributed to growing speculation about Stephanopoulos’ future at the network. Insiders have hinted that his possible departure is a topic of discussion within ABC News, especially after the defamation settlement. The possibility of Stephanopoulos leaving has only added to the sense of uncertainty surrounding ABC News’ direction.
Amid all these changes, the network is working to shore up Good Morning America’s performance, which has recently fallen behind NBC’s Today show in the ratings. The new consolidation efforts, along with the cuts to staffing, are being seen as part of a broader strategy to enhance the program’s competitiveness and secure its future.
As Disney and ABC continue to navigate the challenges of a rapidly changing media landscape, employees remain concerned about their job security and the network’s long-term strategy. Many are waiting to see if the changes will stabilize the organization or if further cuts and restructuring will follow.
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