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ESPN to Lay Off 100 Employees

DOW JONES & COMPANY, INC. 10:37 AM ET 4/26/2017

Walt Disney Co.'s ESPN is laying off about 100 employees, including on-air talent, a person familiar with the matter said, as it further looks to cut costs amid challenging times in the pay-TV business.

"Dynamic change demands an increased focus on versatility and value, and as a result, we have been engaged in the challenging process of determining the talent -- anchors, analysts, reporters, writers and those who handle play-by-play -- necessary to meet those demands," wrote ESPN President John Skipper in a blog post Wednesday morning.

He said that the layoffs affecting those roles will occur this week, as well as a "limited" number of other cuts. A "handful" of new jobs will be posted, he said.

Ed Werder, a longtime NFL reporter for ESPN, tweeted: "After 17 years reporting on #NFL, I've been informed that I'm being laid off by ESPN effective immediately. I have no plans to retire."

Over the past few years, ESPN has made several rounds of layoffs and let lapse contracts with high-profile talent as it has girded for a ramp-up in sports programming costs and has faced mounting cable subscriber losses due to cord- cutting and people opting for cheaper, skinnier bundles without ESPN. The sports juggernaut's challenges have become the focus of Disney investors in recent times.

Mr. Skipper said the company has been trying to make its content strategy more nimble and gave the example of how ESPN has been trying to meld together various SportsCenter brands and digital offshoots under one umbrella.

In the post, Mr. Skipper thanked the employees, who he said have done "great work for our company. He said the company will continue to "foster creativity and investment in the products and resources necessary to embrace the opportunities that lie ahead."

Some analysts are starting to sound optimistic notes about ESPN's future. Morgan Stanley analyst Benjamin Swinburne wrote in a research note last week that Disney has roughly 20% to 25% of its carriage contracts with cable and satellite TV providers up for renewal by the end of fiscal year 2018, which provides an opportunity for ESPN to grow its rates " above consensus cautious expectations." The firm also said that more streaming skinny bundles launching, such as YouTube TV and Hulu's forthcoming service, could allow for ESPN to expand its profits over the next several years despite pressure in the traditional pay-TV business.

Write to Shalini Ramachandran at [e-mail]


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04-26-171037ET
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