ESPN is resorting to layoffs as the sports network has seen its subscriber numbers drop. Sources at ESPN revealed to Yahoo Finance that the cuts will start on May 1st and mostly be done by May 9th. This is around the time that Disney will announce its quarterly earnings. The cuts could even extend until May 16th which is when the network presents its annual Upfronts in New York.
According to the source, more than 40 people will be let go and all of them are are “talent.” Talent is the label ESPN has given to radio hosts and writers next to traditional TV personalities. There are 1,000 people in this category.
ESPN said in a statement, “We have long been about serving fans and innovating to create the best content for them.”
“Today’s fans consume content in many different ways and we are in a continuous process of adapting to change and improving what we do. Inevitably that has consequences for how we utilize our talent. We are confident that ESPN will continue to have a roster of talent that is unequaled in sports.”
In Disney’s fourth quarter of 2016, the owner of ESPN said that it had “lower advertising and affiliate revenue” in the quarter.
In Disney’s first quarter of 2017, revenues in the media division fell 2% and operating income fell 4% year over year.
According to Nielsen, last October was ESPN’s
In October of last year, ESPN had its worst month ever, losing 621,000 subscribers, according to Nielsen.
There is no official word yet on which people will be let go.
Disclaimer: We have no position in Walt Disney Co (NYSE: DIS) and have not been compensated for this article.