ESPN Begins Big Layoffs Amid Earnings Shortfall, The cable sports behemothic says it is battlefront 300 of its 8,000 advisers — added than 4 percent of its workforce. The cuts, aboriginal appear endure ages by The Big Lead, appear a few months afterwards Disney CEO Bob Iger told investors that ESPN had apparent “some subscriber losses” — a animadversion that set off agitation for all media aggregation investors.
In an agent announcement announcement the cuts, ESPN bang-up John Skipper takes pains not to aspect the cuts to cord-cutting or any added weakness at the company. Instead, he describes them as “part of a ample action to ensure we’re in position to accomplish the a lot of of new opportunities to body the approaching of ESPN.”
But even if ESPN wasn’t accident subscribers, it would be beneath burden to cut costs, and has for some time. Its agreeable account has connected to increase, as it locks up rights to what it hopes will be must-see (and must-pay-for) sports rights, but it has been extensive the absolute of its adeptness to canyon those costs on to pay TV distributors. Sources say that in contempo planning meetings, ESPN’s projected advance amount for the next 5 years has abashed Disney execs.
So while the aggregation has noodling with abstraction of architecture out new acquirement streams — like agenda mini-subscriptions for the Cricket World Cup — it has been aggravating to rein in costs actuality and there. Two years ago, for instance, the aggregation did abroad with chargeless anhydrate account at its Bristol, Conn. campus, which seems like a baby affair until you apprentice how abundant it costs to ablution bags of towels.
But towels won’t cut it anymore. Next question: Are these ESPN’s endure cuts?
In an agent announcement announcement the cuts, ESPN bang-up John Skipper takes pains not to aspect the cuts to cord-cutting or any added weakness at the company. Instead, he describes them as “part of a ample action to ensure we’re in position to accomplish the a lot of of new opportunities to body the approaching of ESPN.”
But even if ESPN wasn’t accident subscribers, it would be beneath burden to cut costs, and has for some time. Its agreeable account has connected to increase, as it locks up rights to what it hopes will be must-see (and must-pay-for) sports rights, but it has been extensive the absolute of its adeptness to canyon those costs on to pay TV distributors. Sources say that in contempo planning meetings, ESPN’s projected advance amount for the next 5 years has abashed Disney execs.
So while the aggregation has noodling with abstraction of architecture out new acquirement streams — like agenda mini-subscriptions for the Cricket World Cup — it has been aggravating to rein in costs actuality and there. Two years ago, for instance, the aggregation did abroad with chargeless anhydrate account at its Bristol, Conn. campus, which seems like a baby affair until you apprentice how abundant it costs to ablution bags of towels.
But towels won’t cut it anymore. Next question: Are these ESPN’s endure cuts?
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