Disney's TV Divisions Undergo Major Restructuring: Layoffs and Consolidation Reshape the Industry

In a significant move, Disney's television divisions are undergoing a major reorganization, resulting in additional layoffs and impacting dozens of employees. The changes involve the consolidation of ABC Signature into 20th Television, as well as the merging of the ABC and Hulu Originals scripted drama and comedy teams under a new leadership structure.

Streamlining for the Future: Disney's Strategic Shift in TV Operations

Consolidating ABC Signature into 20th Television

The ABC Signature banner has been shuttered as part of this consolidation effort, with its television production operations being folded into 20th Television, which is currently led by Karey Burke. This move is aimed at streamlining the company's operations and maximizing its resources.As a result of this restructuring, Tracy Underwood, the former President of ABC Signature, will be transitioning into a new overall producing deal with Disney Television Studios. Underwood's departure is a significant loss, as she has been recognized as an exceptional leader whose passion and deep relationships with creative partners have contributed greatly to the organization.

Merging ABC and Hulu Originals Scripted Teams

In addition to the changes on the studio side, the ABC and Hulu Originals scripted drama and comedy teams are now being consolidated into a single unit. Simran Sethi, previously the EVP of ABC/Freeform, has been elevated to the new role of President of Scripted Programming, Hulu Originals and ABC Entertainment.This consolidation is designed to maximize the company's ability to launch content on both linear and streaming platforms, leveraging the strengths of both the ABC and Hulu teams. Jordan Helman, who previously served as EVP of drama for Hulu Originals, will now oversee both broadcast and streaming drama, reporting to Sethi.The comedy team, previously led by Erin Wehrenberg, will now report to Sethi in the interim as the company determines the next steps for that division.

Navigating Difficult Decisions and Layoffs

These organizational changes have resulted in the reduction of the company's workforce, with approximately 30 employees being affected, primarily from the studio side and split evenly between ABC Signature and 20th Television.In internal memos, Craig Erwich, the President of Disney Television Group, and Eric Schrier, the President of Disney Television Studios and Business Operations, acknowledged the difficulty of these decisions, describing them as "painstaking" and expressing gratitude for the contributions of the departing colleagues.The executives emphasized the importance of navigating this transition with respect and compassion, recognizing the challenges that come with organizational changes of this magnitude.

Consolidation Trends in the Industry

The restructuring at Disney's television divisions is part of a broader trend in the industry, as other studios and media companies have been implementing similar cost-saving and streamlining measures. The speculation about the potential merger of Disney's TV studios dates back to 2017, when the company proposed the acquisition of 21st Century Fox.Since the completion of that deal in 2019, there have been numerous rounds of studio consolidation, including the combination of ABC Studios and ABC Signature in 2020, as well as the folding of Touchstone Television/Fox21 into 20th TV that same year.These moves reflect the ongoing shifts in the media landscape, as companies seek to optimize their operations and adapt to the changing demands of the industry.

Navigating the Future with Confidence

Despite the challenges posed by these organizational changes, the Disney executives have expressed confidence in the company's ability to navigate this transition and continue delivering high-quality content.Schrier highlighted the "extraordinary group of executives" leading the company's television operations, emphasizing their commitment to "creative risk-taking and delivering quality content" as key drivers for the business's future success.Similarly, Erwich conveyed his belief that the combined passion and innovation of the team will position the company as a leader in the entertainment industry, even as they navigate the complexities of this moment.As the media landscape continues to evolve, Disney's television divisions are poised to adapt and thrive, leveraging their strengths and strategic vision to shape the future of the industry.