ESPN will lay off about 300 workers, and eliminate 200 positions that are currently open, as the COVID-19 pandemic has created headwinds for the Disney-owned sports media company.
In a letter to ESPN employees, CEO Jimmy Pitaro said he made the call on layoffs after the Bristol-based company already implemented other cost-saving measures including furloughs, budget cuts and savings measures in operations and production.
“However, building a successful future in a changing world means facing hard choices,” Pitaro said. “We are parting ways with some exceptional team members – some of whom have been here for a long time – and all of whom have made important contributions to ESPN.”
Layoffs are a sharp departure from where ESPN was as it began the year.
Entering 2020 Pitaro, a former Walt Disney Co. executive, was bullish on ESPN’s prospects for the year. The network had recently introduced the ACC Network out of Bristol, which covers Atlantic Coast Conference collegiate sports. More than 100 jobs had been added to Bristol over the year to support the network and that number was expected to grow.Â
ESPN continued its lean into sports gambling amid the pandemic, with an announcement in September that it inked two separate multi-year deals with Caesars Entertainment Inc. and DraftKings Inc.
But the pandemic’s negative effect on ESPN’s bottom line has persisted, Pitaro said.
“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,” Pitaro said “The pandemic’s significant impact on our business clearly accelerated those forward-looking discussions.”
In his letter, Pitaro didn’t say when layoffs would occur, or which 200 additional positions will be cut, but said more details will emerge in coming weeks.
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