Disney is attempting to cut 10 percent a year from its costs, a move that may bring layoffs after a summer of bad box office numbers and struggling ratings.
The media giant is targeting the cuts in its ABC television group, a source familiar with the changes told CNBC. Disney has yet to finalize plans regarding staffing levels but the company is seeking to make reductions by attrition, the source said.
Disney is expected to identify those cuts by the end of September.
Cuts are anticipated to take place throughout subdivisons of the ABC television group, according to the Wall Street Journal. Disney plans to make reductions at ABC’s broadcast network, news, television production studio and other local stations.
Disney shares reflect the company’s recent lackluster performance, down 2 percent this year at $102 per share, after hitting a 52-week high of $115.84 on April 2, according to FactSet.
A number of high-level executives at large media companies have expressed frustration and anger with Disney CEO Bob Iger‘s decision, announced on August 8, to create two direct-to-consumer offerings, according to conversations these executives have had with CNBC.
Disney plans to remove its movies from the popular streaming service Netflix beginning in 2019 and start its own. Next year, ESPN’s streaming service kicks off, with content from 10,000 sporting events.
Iger’s response to the criticism has been: “Any intellectual property company should be careful about being lulled into supporting a platform that may not serve the customer effectively in a disrupted world.”