Disney to halve staff at ABC Family

LONDON - Disney is to axe around 300 people from its ABC Family cable channel, representing about half of the station's staff, just three months after the company acquired the network from News Corporation for £3.6bn.

The layoffs are expected to take place over the next few weeks. They will affect almost all divisions, but the most likely affected staff will be in administrative and support roles, rather than those in creative positions.



Employees are expected to learn their fate next week at a series of meetings.



The job cuts had been expected as part of a restructuring of the loss-making cable network, which Disney hopes will expand its audience and help boost revenues at its ABC television network.



However, Disney's ambitions for the channel have been thwarted by a legal dispute with satellite operator EchoStar, which is trying to drop the channel to make room for the local programming it needs to carry to satisfy competition concerns about its proposed takeover of DirecTV.



EchoStar is trying to terminate its contract with ABC Family under a clause which allows it to drop the channel if its ownership changes hands. EchoStar is also complaining about low ratings and claiming that Disney has increased the channel's access fees.



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