ESPN to let go of 300 due to virus struggles

ESPN’s workforce has taken a hit.

The sports media company announced in a memo obtained by Front Office Sports it would be laying off 300 employees as an effect of the ongoing coronavirus pandemic and a change in how consumers watch sports. Another 200 vacant jobs also won’t be filled according to the memo the company’s president sent to employees about the layoffs.

“As you know, we value transparency in our internal dialogue, and that means in both good and challenging times,” ESPN president Jimmy Pitaro said in an internal memo sent around the company. “After much consideration, I have some difficult organizational decisions to share. We will be reducing our workforce, impacting approximately 300 valued team members, in addition to 200 open positions.

“Today is hard because ESPN has always been — and will always be — fortified by its fantastic people,” Pitaro continued. “Teamwork, dedication, spirit and grit have built this place and are what makes ESPN special. Prior to the pandemic, we had been deeply engaged in strategizing how best to position ESPN for future success amidst tremendous disruption in how fans consume sports. The pandemic’s significant impact on our business clearly accelerated those forward-looking discussions.”

ESPN’s parent company, Disney, in October shared it would be centralizing its media businesses to accelerate its direct-to-consumer strategy and that the restructuring to lessen the amount of staff. During the pandemic, streaming services have become the most important aspect of Disney’s business, though Disney’s changes to its business were not outright described as a result of the pandemic.

“I would not characterize it as a response to COVID,” CEO Bob Chapek said on CNBC’s “Closing Bell.” “I would say COVID accelerated the rate at which we made this transition, but this transition was going to happen anyway. We are tilting the scale pretty dramatically [toward streaming].”

In the restructuring, Pitaro remains head of sports content, but reports directly to Chapek.

“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,” Pitaro continued in the memo. “Placing resources in support of our direct-to-consumer business strategy, digital, and, of course, continued innovative television experiences, is more critical than ever. However, building a successful future in a changing world means facing hard choices.”

This isn’t the first time ESPN has laid off a large number of its employees. In 2015, the sports media company let go of about 300 employees as the cable television landscape started changing. In 2013, it laid off 400 employees to improve profitability and in 2009, it cut 100 employees.

ESPN’s workforce is more than 6,000 strong at their headquarters in Bristol, Conn. and around the world.