If you are reading this and work for ESPN, then brace for impact. The entertainment and sports broadcasting network will begin layoffs early next week as part of parent company Disney’s cost-cutting efforts.
According to CNBC, some on-air talent and management will be included in the employee cuts, although the folks who commented on the matter wished not to be mentioned.
The number of layoffs is still unclear; however, Disney is planning on eliminating 7,000 jobs in three rounds, with its second round of cuts happening next week. The company is also looking to lay off roughly 15% of the staff in its entertainment division next week, according to Bloomberg reports.
Under CEO Bob Iger, Disney is cutting costs to try and boost free cash flow amidst its streaming net losses.
For ESPN to renew its contract with the National Basketball Association, (which they are absolutely interested in doing) the network will likely need to pay a significant premium on the $1.4 billion per year rights fee it already pays the league.
According to an industry source close to Deadline, they said, “It sucks, to be honest. Iger coming back got everyone’s hopes up for investment in people as well as creativity. Truth is if you’re not operating a ride at the parks, you could be on the chopping block. Maybe the worst part is still not knowing who is being let go, no matter how much time you put in.”
Renewal discussions are already taking place. Disney said earlier this year that it plans to cut $5.5 billion in costs including $3 billion in content spending.
Disney reorganized their plans earlier this year with ESPN finalizing its release as its own division for the first time. This will hopefully offer a clearer vision as to where the sole business wants to go. ESPN laid off roughly 300 employees back in 2020.
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