ESPN is reportedly poised for another huge round of layoffs. Michael McCarthy of Front Office Sports reports Disney has pushed the network to cut costs and it could lead to hundreds of employees losing their jobs.
McCarthy says one source pegged the number of potential cuts somewhere between 300 and 700 employees, while another estimated the possible losses at 400. More from his article:
"The cuts are expected to hit hardest among ESPN employees who work behind the camera. But some on-camera TV and radio talents could be impacted — particularly if their contracts are expiring this year. "
On top of that, ESPN may ask its high-paid talent to take salary reductions in an effort to cut "tens of millions in salary."
ESPN currently employs around 4,000 people at its headquarters in Bristol, Connecticut, with a roster of 6,500 worldwide.
Disney is making cuts across the board, so ESPN isn't the only area of its portfolio taking hits. McCarthy reports the following:
"Another source said the pressure for cost savings is coming directly from ESPN parent Walt Disney Co., which was forced to shut down its lucrative theme parks and cruise lines for months during the pandemic. “This is coming from Burbank,” they said, referring to the location of Disney’s headquarters."
Outkick's Ryan Glasspiegel was the first to report that cuts could be coming to ESPN.
This would be yet another massive round of layoffs at a company that has seen several similar events over the past five years. It would be the latest network to slash jobs in the sports sector over the past few moths as revenues have dropped during the COVID-19 pandemic.