ESPN to Cut 150 More Jobs as It Shifts Focus -- Update
November 29 2017 - 5:53PM
Dow Jones News
By Amol Sharma
Walt Disney Co.'s ESPN said it is laying off 150 employees, the
sports TV giant's latest round of cuts as it deals with pressures
in the pay-TV business and aims to shift resources into new areas
such as a planned direct-to-consumer streaming service.
In a memo to staff on Wednesday, ESPN President John Skipper
said the majority of the jobs being eliminated are in studio
production, technology and digital content, "and they generally
reflect decisions to do less in certain instances and redirect
resources." ESPN has 8,000 employees.
"We appreciate their contributions, and will assist them as much
as possible in this difficult moment," Mr. Skipper wrote.
ESPN's business has taken a hit as more consumers cut the cable
TV cord or switch to "skinny" bundles of channels. The network has
built a lucrative business, largely from the subscription fees that
come from monthly cable bills.
The changes in the industry have put pressure on many networks
to restructure their businesses and cut costs. In April, ESPN laid
off about 100 employees, including on-air talent.
ESPN continued to lose cable subscribers in the fourth quarter
ended Sept. 30, as ad revenue declined and programming costs for
sports rights rose. Subscription revenue still increased, partly
because of price increases built into contracts. The company's
cable revenue in the quarter was flat at $3.95 billion and
operating income declined 1% to $1.24 billion from the year-earlier
quarter.
ESPN plans to continue hiring as it invests in new initiatives,
a person familiar with the situation said. Besides ESPN+, the
streaming service that will debut this spring, ESPN has also
launched a version of "SportsCenter" for Snapchat.
On the traditional TV side, the network will be launching some
new shows, such as "Get Up," featuring longtime morning host Mike
Greenberg, Michelle Beadle and Jalen Rose, the person said.
On Wednesday, ESPN also said the weeknight editions of
"SportsCenter" that air on its ESPNEWS channel from 7 p.m. to 11
p.m. will end on Nov. 30.
Norby Williamson, ESPN's executive vice president and executive
editor of studio production, said the change is part of the
franchise's evolution as its shifts resources to new such
initiatives as its Snapchat show, morning show "SportsCenter:AM,"
and "SportsCenter Right Now," which provides up-to-the-minute news
updates across television and digital platforms.
"As always, we will cover important breaking news at all times
of day," Mr. Williamson wrote in a memo to employees.
"SportsCenter, ESPN's biggest sub-brand, remains a vibrant and
vital part of our plans going forward as we find the best ways to
serve sports fans."
Write to Amol Sharma at amol.sharma@wsj.com
(END) Dow Jones Newswires
November 29, 2017 17:38 ET (22:38 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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