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Sesame Workshop To 'Downsize Significantly' Amid Funding Cuts, Streaming Partner Loss

Sesame Workshop, the nonprofit production company behind the beloved children's educational TV show "Sesame Street," is facing major staff cuts after losing key funding.

Daily Voice confirmed the layoffs in an email from a Sesame Workshop spokesperson on Wednesday, Mar. 5. The job cuts were first reported by Semafor media editor Max Tani, who obtained an internal staff note from CEO Sherrie Rollins Westin.

The spokesperson didn't disclose how many employees were affected.

"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," the spokesperson said.

The reductions come after Warner Bros. Discovery, which owns the Max streaming service, announced in December 2024 that it wouldn't renew its funding deal with "Sesame Street."

"Given that our largest single expense is people and benefits, we must downsize significantly and make what we hope will be temporary changes to our benefits and bonus program," wrote Westin. "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."

The staff cuts come about a day after more than 200 Sesame Workshop employees moved to unionize, seeking representation with OPEIU Local 153. They include education experts, fundraisers, and producers.

The workers have rallied behind the effort to secure job protections and fair pay.

"'Sesame Street' has taught generations the importance of kindness, fairness, and standing up for what's right," said Phoebe Gilpin, Sesame Workshop's senior director of formal learning. "As the dedicated staff behind this beloved show and so much more, we believe Sesame Workshop should embody those same values by ensuring all workers have a voice in the decisions that affect us.

"By coming together, we believe we can build a stronger, more supportive workplace that embodies the crucial lessons we teach the world's children every day."

First Lady Barbara Bush participates in a taping of the television show "Sesame Street".

Wikimedia Commons - George Bush Presidential Library and Museum

Union supporters said they aimed to negotiate a contract that safeguards their ability to continue providing critical early learning resources to millions of children worldwide. 

"We believe so deeply in Sesame's mission to help children grow smarter, stronger, and kinder," said digital production coordinator Autumn Sancho. "At the same time, we've seen how our working conditions directly impact our ability to fulfill that mission. By coming together, we believe we can build a more supportive workplace that enables us to continue the work that families around the world rely on."

It's unclear how the layoffs would affect potential union negotiations. Sesame Workshop's spokesperson didn't say if the unionization effort was related to the job cuts.

Affected employees will meet with HR on Thursday, Mar. 6, and Sesame Workshop will implement temporary reductions to benefits and its bonus program.

"Unfortunately, Sesame Workshop is not immune to the current economic challenges inherent to the drastically changing media landscape," wrote Westin. "Combined with the end of our current distribution deal and the policy changes affecting our federal funding, we're confronted with a perfect storm. These factors, among others, have left us with a significant budget gap that we must solve for as we head into the next fiscal year."

The shake-up comes as concerns grow over the Trump administration's gutting of federal programs, an effort led by billionaire Elon Musk, who's also the de facto head of the Department of Government Efficiency. Musk has been an opponent of public media funding and drastic cuts could have widespread implications for organizations like NPR and PBS.

The Communication Workers of America union has warned that significantly reduced funding would devastate local public broadcasters, hurt children's educational programming, and lead to widespread layoffs.

"This not simply an entertainment issue – it is a jobs issue," the CWA's website said. "There are more than 1,000 local public television and radio stations in America, representing some of the last locally owned, locally staffed, and locally programmed media outlets in this country. 

"These stations are in every community across the country and employ some 21,000, and thousands of members of the Communications Workers of America who will be left unemployed in this bitter economy should Congress act to kill Big Bird."

Some characters from Season 50 of "Sesame Street".

Warner Bros. Discovery

The advocacy group Our Revolution is planning to demonstrate on March 6 outside NPR headquarters in Washington, DC, to mark "National Protect Public Media Day."

"Trump, Musk, and their authoritarian regime are taking aim at public media to try to silence criticism and the free flow of information that enables a democracy to function," the group posted on Instagram. "Without independent voices to hold them accountable, they'll be free to flood the public square with their propaganda. We can't let them control the airwaves."

Sesame Workshop was founded as the Children's Television Workshop back in 1968, one year before the first episode of "Sesame Street" aired.

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