ESPN is going through another round of layoffs.
CNBC had a memorandum of understanding in which ESPN Chairman Jimmy Pitaro informed employees that around 300 people would be fired when the Disney parent company moves to live-stream more to consumers. Memorandum following internal discussions about layoffs regarding Covid-19.
ESPN will also bid farewell to some of the talent on broadcast when contracts expire.
“As you know, we value transparency in our internal dialogue, and that means in both good times and tough times,” Pitaro wrote in the memo. “After much consideration, I have some tough organizational decisions to share. We are going to cut the workforce, impact about 300 valuable team members, in addition to 200 current positions. open.
The network, which employs around 6,000 employees worldwide, also released a statement Thursday from Pitaro confirming the layoff.
Disney̵7;s share price rose more than 2% on Thursday.
Reports appeared last week that the network could be under more layoffs, as its parent company focuses more on its streaming service. Other legacy media companies have had similar layoffs regarding the pandemic and the switch to streaming this year.
Disney CEO, Bob Chapek, hinted at the possibility of layoffs as the company restructured its media and entertainment divisions into a single organization responsible for content distribution, advertising sales, and Disney +.
As you know, we value transparency in our internal conversations and that means both good times and tough times. After much consideration, I have some tough organizational decisions to share. We’ll be reducing our workforce, impacting around 300 valuable team members, in addition to 200 open positions.
Today was difficult because ESPN has always been – and always will be – strengthened by its wonderful people. Team spirit, dedication, spirit and courage have built this place and are what makes ESPN so special. Before the pandemic, we were deeply involved in strategizing how to best position ESPN for future success amid a massive disruption in how fans consume receptors. sports. The pandemic’s significant impact on our business has clearly spurred forward-looking discussions. In the short term, we have enacted various steps such as reducing executive and talent salaries, reducing salaries and cutting budgets, and implementing innovative operations and production methods, all in order to overcome the COVID storm.
However, we have reached the inflection point. The ongoing pace of change demands great urgency, and we must now undertake sports fan service in countless new ways. Assigning resources to support a direct, digital, and of course creative TV experience is more important than ever. However, building a successful future in a changing world means facing tough choices. Making informed decisions about how and where we need to go – and, as always, in the most efficient way possible – is by far the most challenging job of any leadership team.
And, while it has to be done with a corporate lens, it must also be done with real respect and concern for everyone. We will bid farewell to some special team members – some of whom have been here for a long time – and all of them have made important contributions to ESPN. We’re so grateful for all they did for us, and I assure you we are taking steps to make their transition easier. I’m proud of the people at ESPN.
Together, we have overcome great challenges and adversities over the past several months and know that the decisions and plans made today are by no means mild. However, they are necessary and I believe we will move forward and efficiently navigate this unprecedented disruption. Our Human Resources and Communications Team will continue to keep you up to date with every update and you will hear more insight into our future direction over the next few weeks. In the meantime, if you have questions about anything outlined in this note, please talk to your leadership team or HR Business Partner.