All TV networks, film studios and streaming services will now fall under one division called Media and Distribution, Bloomberg writes. The streaming services Disney +, ESPN + and Hulu also fall under one manager.
The corona crisis has made streaming services that directly reach consumers more important to Disney. The film branch is struggling because cinemas are largely closed in many parts of the world.
At the same time, Disney TV channels are suffering from the fact that many companies have reduced their advertising budgets and the number of households that no longer have cable TV is growing.
28,000 layoffs at amusement parks
CEO Bob Chapek says the new divisional format will better support Disney’s growth strategy. However, there may be more redundancies due to the reorganization. At the theme parks, Disney recently announced it would lay off 28,000 employees.
Disney will hold an investor day at the beginning of December during which the new strategy will be explained more clearly. The share rose more than 5 percent in aftermarket trading.