Jimmy Kimmel Negotiating New Contract with ABC Amid Budget Cuts

Jimmy Kimmel is currently negotiating a one-year extension of his contract with ABC, according to industry source Deadline. The talks come as the network reportedly aims to lower the budget for "Jimmy Kimmel Live!" as part of a wider effort to trim expenses across its television division.

The budget reductions mirror recent cost-cutting actions at other late-night programs, including cuts to "The Late Show with Stephen Colbert" and reductions on "Late Night with Seth Meyers," which saw the removal of its house band and shortened production schedules.

Disney, ABC’s parent company, has been implementing broader workforce reductions, announcing layoffs of 1,000 employees in April and additional cuts in July affecting Pixar and National Geographic. The television segment is expected to undergo a restructuring led by Debra O'Connell, appointed chairman of Disney Entertainment Television in March.

Kimmel and his wife, executive producer Molly McNearney, have previously discussed retirement considerations on Dax Shepard’s "Armchair Expert" podcast, noting that the decision remains fluid.

"I know people who’ve been in that situation. It’s funny. People make a big show of like ‘I’m done and I’m tired doing this’, and then they make a lesser comeback trying to do the same thing. That’s always a bummer," Kimmel said on the podcast.

Industry reporting indicates that the renewal discussions are ongoing, with no final agreement announced.