With ‘Sesame Street’ Searching for a New Home, Sesame Workshop Undergoes Layoffs

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With ‘Sesame Street’ Searching for a New Home, Sesame Workshop Undergoes Layoffs

Sesame Workshop is cutting staff, as the fate of its flagship TV program Sesame Street remains in limbo.

The non-profit is still looking for a new TV or streaming home for Sesame Street, after Warner Bros. Discovery opted not to renew its output deal for new episodes last year. Without a distribution deal in place, the finances of the company are likely to be challenged, especially with production on the upcoming season 56 still set to begin next month.

“Amid the changing media and funding landscape, we have made the difficult decision to reduce the size of our organization,” a spokesperson for Sesame Workshop tells The Hollywood Reporter. “These changes are necessary to ensure that the Workshop is poised to continue to deliver on its mission for years to come, but that does not make the human impact of these reductions any less painful. As production of our 56th Season begins next month, we remain as committed as ever to bringing Sesame Street to children and families for decades to come.”

Season 56 of the show will be the first one post-HBO, and while it does not yet have a home, Sesame has previously said that it will feature an entirely new format, meant to appeal to the tastes of families today.

The most significant change will see the program drop the “magazine”-style format it has long used in favor of two longer, more narrative-driven segments, which will be paired with a new animated series, Tales From 123. The new format will feature two 11-minute story segments, with the new animated series sandwiched in between them.

Each episode will also have a signature song that plays into the theme of the episode.

Sesame Workshop is led by CEO Sherrie Westin, who was named to the top post last year, and COO Joseph Giraldi, who joined earlier this year.

While Sesame Street is still the non-profit’s flagship, it also produces other programming, as well as video and audio content for digital platforms. It also of course has a robust licensing business for toys, games and books, and it holds a well-attended annual fundraising event in New York each year.