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   From: media-poison@disney.com   
      
   Walt Disney Co.’s ABC Television Group plans to make substantial   
   jobs cuts, including at the broadcast network’s Burbank   
   headquarters, in an effort to reduce costs at a time when   
   traditional TV networks face huge challenges.   
      
   The Disney/ABC Television Group, led by Ben Sherwood, is in the   
   early stages of planning for the cuts, according to two people   
   familiar with the plan who were not authorized to discuss it   
   publicly.   
      
   Television executives have not determined how many people might   
   lose their jobs, and they hope some of the cuts will be made   
   through attrition.   
      
   But Disney’s television group is expected to target as much as   
   10% of its annual expenses at its West Coast networks, although   
   that figure could change as the company goes through the   
   planning process, one source said. Cutting that deep could   
   result in the elimination of a few hundred positions.   
      
   News of the cost-cutting effort comes just two weeks after ABC’s   
   most prominent hit-maker over the last decade, Shonda Rhimes,   
   moved to Netflix, leaving behind her home of nearly 15 years —   
   ABC Studios.   
      
   Although dramas that Rhimes produces for ABC, including “Grey’s   
   Anatomy,” a planned spinoff of that hospital drama, the   
   political drama “Scandal” and “How to Get Away with Murder,”   
   will remain on ABC, the company now is under pressure to nurture   
   a new generation of writer/producers — or strike deals with   
   established producers.   
      
   ABC finished the most recent television season in third place in   
   viewers, averaging 6.2 million viewers a night, behind CBS and   
   NBC. But the Disney-owned network slipped to fourth place in the   
   important demographic of viewers ages 18 to 49, behind NBC, CBS   
   and Fox. ABC’s ratings in that demographic fell 16% compared   
   with the previous season.   
      
   Disney’s television operations have been reeling from dramatic   
   changes in consumer behavior. ESPN, which is based in Bristol,   
   Conn., went through a major round of layoffs in its 2016 budget,   
   cutting 350 employees, or 4% of its workforce. Earlier this   
   year, the sports media giant fired about 100 reporters, analysts   
   and commentators in a move to devote fewer resources to reported   
   stories and commentary.   
      
   In the company’s third-quarter earnings, which were released in   
   early August, Disney reported that its television networks   
   revenues for the quarter declined 1% to $5.9 billion while   
   segment operating income fell 22% to $1.8 billion. The decline   
   in profit was attributed to ESPN, which has been hit hard by the   
   trend of cord-cutting in the pay-TV industry.   
      
   The broadcasting unit, which includes ABC and the television   
   stations, posted 4% higher revenue of $1.8 billion. The company   
   is collecting higher fees for the retransmission of its TV   
   station signals. But operating income also tumbled 22% to $253   
   million because of lower advertising revenue and higher   
   programming costs.   
      
   The Disney/ABC Television Group, which includes the ABC   
   broadcast network, the Disney Channel, Freeform channel and   
   eight Disney-owned television stations, employs about 9,000   
   people.   
      
   The Wall Street Journal first reported the potential layoffs   
   late Wednesday.   
      
   Disney shares closed down 1.6% Wednesday, or $1.65, to $101.22.   
      
   http://www.latimes.com/business/hollywood/la-fi-ct-abc-disney-   
   layoffs-20170830-story.html   
      
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