Layoff Shock & Disbelief Rain Down at ABC News

Thursday will go down as a very dark day for ABC as Disney’s forecasted layoffs reached the network’s news division, making employees keenly aware of the fact that no one working under the Disney name is safe from CEO Bob Iger’s job cuts. And we mean no one.

Shock and disbelief rushed through the doors, down the corridors, and into the offices and studios at ABC News on Thursday as Disney’s massive layoff initiative became painfully personal for many employees at the Disney-owned news division. The wave of cuts reached as far as the senior executive level at the news organization, setting into motion a massive newsroom restructuring while an even broader downsizing rained down in other parts of the Disney Company universe.

The cuts are part of a widespread effort to reduce salaries and purge Disney of “useless” employees on the way to saving The Walt Disney Company more than $5.5 billion.

“Throughout the company, teams are being impacted by the downsizing that was announced several weeks ago, including our own ABC News family,” ABC News President Kim Godwin said to staffers via interoffice memo. “While these actions are never easy, they are a necessary step to ensure we’re on solid footing for the years ahead as we chart a sustainable, growth-oriented path forward for the entire organization.”

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Among those dismissed on Thursday were senior vice president of newsgathering Wendy Fisher, Galen Gordon, senior vice president of talent, Mary Noonan, vice president of talent, Los Angeles bureau chief David Herndon, vice president of communications Alison Rudnick, senior executive producer Chris Vlasto; and executive editorial producer Heather Riley.

Those closest to the matter say staffers were shocked by the laying off of so many high-level execs at ABC News.

“There’s a ton of shock that’s gone through the newsroom,” one ABC News staffer said. “So many people with institutional knowledge are gone.”

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The cuts reportedly totaled 50 across the ABC News organization, including some roles that were open and not yet filled.

“While this is a difficult time for all of us – particularly those directly affected by these tough decisions – it’s important to remember that together, we are resilient, and will emerge from this period of transition stronger than before,” Godwin continued in her memo to staff members.

On Thursday, Godwin said she promoted Katie den Daas, London bureau chief, to the role of vice president of newsgathering. She also said that Derek Medina, executive vice president, will now be in charge of talent strategy. Stacia Deshishku, executive editor and senior vice president of news at ABC, will now oversee investigating and enterprise units.

“In the coming days and weeks, we will share additional information about these teams and our plans,” Godwin said.

Marvel Entertainment Chairman Isaac ‘Ike’ Perlmutter Laid Off

The latest executive to be cut in the first round of Disney layoffs is Marvel Entertainment Chairman Isaac “Ike” Perlmutter, according to the New York Times.

“Mr. Perlmutter, 80, was told by phone on Wednesday that Marvel Entertainment, a small division centered on consumer products and run separately from Marvel Studios, was redundant and would be folded into larger Disney business units,” reports the New York Times.

Perlmutter was among those pushing for Nelson Peltz to join the board.

Nelson Peltz of Trian Group had been pushing for a spot on the Disney board, but finally dropped the fight. “Our filings indicate that both Ike and Nelson were working together to try to encourage the board or convince the board to put Nelson on the board,” Iger told CNBC. “They have a relationship that dates back quite some time. We bought Marvel in 2009. I promised Ike the job that he would continue to run Marvel after that. Not forever, necessarily. But after that.”

He also infamously almost fired Kevin Feige, but was stopped by Bob Iger.

Perlmutter, whose position was shifted to chairman in 2017, was “intent on firing Kevin Feige” in 2015, Iger said. This would have been around the same time that Feige was in talks to switch to DC because of frustrations with Perlmutter. Feige is now Chief Creative Officer at Marvel.

“I thought that was a mistake,” Iger continued in regards to Perlmutter firing Feige, “and stepped in to prevent that from happening. I think Kevin is an incredibly, incredibly talented executive that you know, the Marvel track record speaks for itself. And so I moved the moviemaking operation of Marvel out from under Ike into the movie studio under Alan Horn.” Horn was chairman of Walt Disney Studios at the time.

CNBC’s David Faber asked if there was animosity left after this decision, and Iger said, “You’d have to ask Ike about that. But let’s put it this way. He was not happy about it. And I think that unhappiness exists today. And you know, what the link is between that and [Nelson Peltz], his relationship. I think that’s something that you can speculate about. I won’t.”

Perlmutter came to Disney with the purchase of Marvel in 2009.

Marvel Entertainment co-president Rob Steffens and chief counsel John Turitzin were also laid off.

Disney’s Senior Vice President and Chief Compliance Officer Alicia Schwarz Let Go

Senior Vice President and Chief Compliance Officer Alicia Schwarz has been laid off from The Walt Disney Company amid the first of three rounds of company-wide layoffs.

Schwarz’s role will be absorbed by the office of Senior Executive Vice President and General Counsel Horacio Gutierrez. According to Deadline, she joined the company in 2014 as principal counsel, later serving as Vice President and Assistant General Counsel, as well as Global Deputy Chief Compliance Counsel.

The work she was responsible for included ensuring compliance with Disney’s global ethics and standards of business conduct. She was also in charge of managing regulatory compliance with anti-corruption and trade law. These duties will reportedly be taken over by the office of Gutierrez.

Executives at The Walt Disney Company were asked by CEO Bob Iger to identify thousands of potential layoff candidates in an effort to cut nearly $5.5 billion in costs. Iger is reportedly on “a push for profitability.”

Disney is in the midst of an estimated 7,000 job cuts. These are expected to occur across Disney Entertainment; Parks, Experiences, and Products; and ESPN. CEO Bob Iger is under pressure from investors to increase financial stability due to Disney’s stocks currently standing at roughly half the value they were at during summer 2021. Reducing staff is believed to be a way to possibly help their finances in the short term.

News of the layoffs and significant restructuring of The Walt Disney Company was announced in February. At the time, investors seemed sated; however, Disney’s stock has fallen again in recent weeks. Shares have only seen about a 2% increase in 2023 to date.

The Chief Compliance Officer is not the only high-level corporate role terminated in the current round of layoffs.