Deadspin reported Tuesday afternoon that broadcasting giant ESPN has laid off a sizable number of their employees thought to be close to 400.
“The majority of the layoffs today and tomorrow are in Technology…something like 40 people, at least that’s what I’ve heard,” the source told Deadspin. “All three HR people assigned to Technology are handling layoffs today and tomorrow. No idea what is going on in the other departments. I was told ESPN was forced, by Disney, to do the layoffs due to profit margins. The end numbers / percentages, may not be exactly what they’re telling us as we’re being laid off.”
Shortly thereafter ESPN released a statement regarding the layoffs explaining that they are seeking to enhance their growth while keeping managing costs under control.
“We are implementing changes across the company to enhance our continued growth while smartly managing costs, “the sports media giant said in a statement Tuesday. ” While difficult, we are confident that it will make us more competitive, innovative and productive.”
The sports broadcaster added that although lay-offs are difficult, they believe that it will help make them more productive and competitive overall. The company did not release an exact number, but many are speculating that about 300 to 400 people will be affected.
One laid-off employee stated that they were told the broadcast network had chosen to cut 10% across the entire board. The employee also stated that he was told that the company needed to make the cuts in order to reach their profit margin.
The laid-off ESPN employee writes: “I was laid off from ESPN today (Tuesday) after 9 and a half years. Completely out of the blue, no warning at all. I was told it was 10% across the board, which would be roughly 400. I was told the reason was they needed to make their profit margin and they chose to do that via layoff of staff.” Deadspin
While the news of ESPN Layoffs may come as a shock, it does not to industry experts that are aware of Disney owned conglomerates. Disney owns 80% of ESPN and has been forcing cuts in many divisions. Walt Disney Studios was hit by a large amount of lay-offs as was its newly purchased LucasArts studio.
The last time that ESPN intuited any large scale lay-offs was in 2009 when the company laid off 100 employees, according to the New York Times.
— jamesmiller (@JimMiller) May 21, 2013
— John Ourand (@Ourand_SBJ) May 21, 2013
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