Disney is planning to reduce its workforce by approximately 6% across ABC News Group and Disney Entertainment Networks, a source familiar with the matter revealed on Tuesday. The decision comes as the company navigates shifting viewer habits and a declining traditional TV audience.

The layoffs, impacting fewer than 200 employees, are expected to be announced as early as Wednesday, with ABC News bearing the brunt of the cuts, according to the source, who requested anonymity due to the sensitive nature of the information.

Restructuring at ABC News

As part of the restructuring, some of ABC’s flagship programs, including 20/20 and Nightline, will be consolidated into a single unit. Additionally, Disney is integrating its digital editorial and social media teams with its news gathering, shows, and owned stations, the source said.

ABC News, home to the widely watched Good Morning America, will also see significant changes. The three-hour show will now operate under a single leader, streamlining production. Previously, the show’s third hour had a separate production team.

The move is part of a larger trend among media giants adapting to the ongoing decline of cable television viewership as audiences shift to streaming platforms. Major networks are rethinking their business models to remain competitive in an increasingly digital media landscape.

While ABC News has yet to comment on the restructuring, the cuts come on the heels of Disney’s latest earnings report, which showed a 44% increase in adjusted per-share earnings, reaching $1.76 for the October-December quarter.

As the entertainment giant recalibrates its strategy, the focus will be on how it continues to evolve in response to the rapidly changing media consumption habits of global audiences.