Why the ESPN layoffs may matter for you

David Kohl, FR51830 AP

The layoffs come at a time of ‘unprecedented disruption’ in the sports entertainment industry

ESPN will eliminate 500 positions in an effort to prioritize direct-to-consumer and digital initiatives, according to memo ESPN Chairman Jimmy Pitaro sent his staff Thursday morning, via Deadline.

• This announcement comes less than a month after ESPN’s parent company, Disney, unveiled a sweeping organizational change aimed to bolster the company’s streaming services.

What we know

• ESPN aims to redistribute the resources from the cuts into direct-to-consumer business strategy, digital project and innovative television experiences, according to the memo.
• The cuts include 300 ESPN staff members and 200 open positions that now will not be filled.
• According to Deadline, the layoffs account for approximately 6% of the company’s personnel.

Key quote

In the memo sent to ESPN staff Thursday morning, Pitaro stated, per Deadline:

“We have ... reached an inflection point. The speed at which change is occurring requires great urgency, and we must now deliver on serving sports fans in a myriad of new ways. Placing (our) resources in support of our direct-to-consumer business strategy, digital, and, of course, continued innovative television experiences, is more critical than ever.”

Why right now

The pandemic left a profound impact on ESPN as professional sports were halted for three months then returned in diminishing fashion, according to The Hollywood Reporter.

“The pandemic’s effect on ESPN clearly accelerated our thinking on all fronts,” Pitaro said in a separate statement, via Deadline. “As a result of these circumstances, we informed our employees that we have made the difficult decision to reduce our workforce to create a more agile, efficient organization.”

from Deseret News https://ift.tt/3k5uFca