Bob Iger’s big changes at Disney could lead to more layoffs

In the past, production companies overseeing Disney projects were required to pay for their production costs upfront and then seek out their reimbursement from the DMED, leaving all of those financial losses concentrated on the department’s books. Moving away from that kind of structure could, in theory, improve Wall Street’s outlook on the company.

According to Deadline’s sources, much of the restructuring talk stems from a desire to move away from the Chapek-era chain of command that consolidated much of the company’s distribution decision-making power within the DMED under Daniel, a Chapek supporter. It’s not currently clear what will happen to the DMED’s remaining executives, though the branch’s functions will be picked up by other parts of the company.

It’s also not clear exactly how Disney might streamline Disney Television Studios, which consists of 20th Television, 20th Television Animation, ABC Signature, FX Productions, Searchlight Television, and Walt Disney Television Alternative. Any move to bring the TV arms even closer together would likely mean more layoffs at Disney, an unfortunate consequence of the company’s focus on cutting costs and trying to bolster the strength of its stock.