A series of layoffs are set to rock Disney this week.
The Walt Disney Company is set to eliminate approximately 200 positions within the ABC News Group and Disney Entertainment Networks division, according to reports. The staff reductions, expected to be communicated to employees as early as Wednesday, represent nearly 6% of the combined workforce of these two units.
Bob Iger | 2019 Disney Legends Awards Ceremony | D23 EXPO 2019. Photo Credit: nagi usano from Tokyo, Japan, CC BY-SA 2.0 <https://creativecommons.org/licenses/by-sa/2.0>, via Wikimedia Commons
This move is part of Disney’s ongoing strategy to cut costs as the company navigates shifting consumer habits. Traditional television viewership has declined, with many consumers opting for streaming services over cable subscriptions. This shift has also affected advertising revenue, prompting Disney to reevaluate its investment in legacy media while directing resources toward sports and entertainment content in the streaming marketplace.
Among the most significant changes, Disney is shutting down 538, a political news site known for its election forecasting. The site, which employed approximately 15 people, will be eliminated as part of the cost-cutting measures. 538, originally founded by statistician Nate Silver, gained prominence for its analytical models that aggregated polling data to predict election outcomes. While the site earned recognition for correctly forecasting all 50 states in the 2012 U.S. election, it has also been criticized for its handling of later elections.
Bob Iger via CNBC Television YouTube
During the 2016 election, 538 gave Donald Trump a 29% chance of victory, a projection that was seen as an underestimation of the eventual outcome. More recently, in the 2024 election cycle, the site faced internal challenges following Silver’s departure. Reports surfaced that its election model was taken offline for an extended period due to performance issues, with Silver himself calling the model “broken” and cautioning against relying on its forecasts.
The decision to shutter 538 also highlights its contentious relationship with polling firm Rasmussen Reports. 538 removed Rasmussen from its polling averages, claiming it failed to meet its internal standards. However, in the 2024 U.S. presidential election, Rasmussen Reports demonstrated notable accuracy in its polling projections. In their final national poll before the election, Rasmussen reported that former President Donald Trump held a three-point lead over Vice President Kamala Harris, with figures standing at 49% for Trump and 46% for Harris. This closely mirrored the actual election outcome.
Donald Trump sits down at an interview with Sean Hannity – YouTube, Fox News
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In addition to 538’s closure, Disney is making further structural changes at ABC News. The network’s long-running news magazine programs, 20/20 and Nightline will be consolidated into one unit, resulting in additional staffing cuts. Moreover, Good Morning America is restructuring its production team, with all three hours of the program now being managed under a single leader, eliminating the need for separate teams.
Elsewhere, at the Disney Entertainment Networks division, which oversees broadcast networks and cable channels like Freeform and FX, staffing reductions will impact program planning and scheduling.
The Disney layoffs are the latest in a series of workforce reductions across Bob Iger’s media empire as the company attempts to streamline operations and refocus on areas of growth. Traditional media outlets continue to struggle in the evolving digital landscape, and Disney’s latest cuts signal a further retreat from legacy operations in favor of streaming and sports media investments.
Poll findings from Rasmussen Reports; Copyright Scott Rasmussen
538’s shutdown marks a major shift in the landscape of political forecasting, raising questions about the future of data-driven journalism in an industry where trust and accuracy remain points of contention. Meanwhile, Rasmussen Reports continues to operate independently, reinforcing its own polling methodologies despite 538’s dismissal. As Disney moves forward with its restructuring, the broader implications for the news media and political analysis industries remain to be seen.
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