The nonprofit behind “Sesame Street” announced “painful” staff reductions as it searches for a new streaming partner to air the iconic children’s show.
In a memo to staff sent Tuesday, Sesame Workshop President and CEO Sherrie Rollins Westin blamed the end of a distribution deal with Max and the loss of federal funding under President Donald Trump.
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“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,” she wrote. “Given that our largest single expense is people and benefits, we must downsize significantly.” She said the workshop was also cutting benefits and bonuses, though she said she hoped these moves would be temporary.
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“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,” she wrote.
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The future of the 55-year-old show has been in limbo since Warner Bros. Discovery announced it would not be renewing an agreement to air “Sesame Street” on its streaming service Max, previously called HBO Max. The show started running on HBO in 2016, after airing exclusively on public television since its debut in 1969. Discovery announced it was not renewing the deal in December but had informed Sesame of its decision at least a year ago, The Washington Post reported. Sesame officials have met with possible partners but have yet to announce a new distribution agreement.
In a memo to staff sent Tuesday, Sesame Workshop President and CEO Sherrie Rollins Westin blamed the end of a distribution deal with Max and the loss of federal funding under President Donald Trump.

“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,” she wrote. “Given that our largest single expense is people and benefits, we must downsize significantly.” She said the workshop was also cutting benefits and bonuses, though she said she hoped these moves would be temporary.
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“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,” she wrote.
▶️
Follow Television
The future of the 55-year-old show has been in limbo since Warner Bros. Discovery announced it would not be renewing an agreement to air “Sesame Street” on its streaming service Max, previously called HBO Max. The show started running on HBO in 2016, after airing exclusively on public television since its debut in 1969. Discovery announced it was not renewing the deal in December but had informed Sesame of its decision at least a year ago, The Washington Post reported. Sesame officials have met with possible partners but have yet to announce a new distribution agreement.