Disney's Massive Restructuring Is Impacting 2 Big Areas of the Company

As the Walt Disney Company reaches its 100th year, it has been going through a lot of changes.

©Disney

Earlier in 2023, Disney announced that it would undergo a massive restructuring, which included rounds of layoffs and job cuts near the 7,000 mark. In addition, the company reorganized into three divisions: Disney Entertainment; ESPN; and Parks, Experiences, and Products. Eight months later, two new updates have emerged as a part of this restructuring that could play a role in the future of the company.

ESPN

As part of the restructuring, ESPN was split off from entertainment into its own division. The ESPN segment, which includes the TV network and ESPN+ streaming service, has largely been considered one of Disney’s biggest assets — but the new separation is giving investors a better look at ESPN’s financials for the first time.

©ESPN

According to CNBC, a closer look has shown that ESPN’s revenue has been decreasing for the last few quarters. In the first quarter, the network had about $4.4 billion in revenue, which fell to $4.1 billion in the second quarter and again to $4.1 in the third quarter. Disney is set to release fiscal earnings for the fourth quarter on November 8th.

©ESPN

Amidst all of this news regarding the ESPN segment’s financials, Disney is in the process of looking for a strategic investor to help shape the future of the division.

Disney Entertainment

Another change may be coming to one of the components of Disney’s Entertainment division — “Good Morning America”. According to Variety, Disney is in talks to move all of the company’s New York properties to a building in downtown New York in the Hudson Square neighborhood in 2025.

©Disney

This change would affect programs that are currently filmed in well-known studios, like “Good Morning America” and “Live with Kelly and Mark.” For “GMA,” that means stepping away from its Times Square location, where it gained some success competing with NBC’s “Today” for morning viewers.

Ricky Strauss, president, Content & Marketing for Disney+ and Good Morning America’s Robin Roberts.

The location helped the program connect with viewers, allowing folks in the city to get a glipse at the production through giant street-level windows. Even with the move, the show hopes to stay connected with New York City, however. The producers plan to continue to send hosts out to various parts of the town, as well as other cities througout the United States.

While the move might not be favorable to everyone, it could be an optimistic change for others. Iger has stated that he might sell the ABC network in the past, but a move to Disney’s new building could signify the company wants to keep the network in the long run.