Sources: ESPN Laying Off Hundreds

[The Straight Story]

ESPN is laying off a portion of its staff today, a network spokesman confirms to us. How many? ESPN won't say. A tipster told us earlier today that it would be more than 400 staffers. A source at ESPN said that number is a little high, but it appears to be in the hundreds.

Here's the statement from ESPN:

We are implementing changes across the company to enhance our continued growth while smartly managing costs. While difficult, we are confident that it will make us more competitive, innovative and productive.

So where in the world did this come from? ESPN is monstrously profitable and we hadn't heard a word about this until this morning. Well, ESPN has been gobbling up live rights to events left and right, and those rights are really expensive. We've heard they needed to reduce costs as a result. Also: ESPN's parent company Disney is apparently asking all divisions to cut costs.

..

UPDATE, 11:54 a.m.: A laid-off ESPN employee writes us:

I was laid off from ESPN today 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.


UPDATE, 12:10 p.m.: More from the laid-off staffer:

btw.....we were told that the layoffs ARE tied to the profit margin that ESPN needs to meet and the fact they haven't met that number. Your comments about them buying all of these live rights and now needed to reduce overhead costs is dead on.

http://deadspin.com/source-espn-laying-off-hundreds-509043249

[Rex]

1. "...enhance our continued growth while smartly managing costs."

IS THAT what they are calling it nowadays? Back in my day it was called mass layoffs. Funny how doubleplusgood speak is the norm in our society.

[MineralMan]

2. Another Reason to Be Self-Employed.

I can't be laid off.

[Rex]

3. Word.

It is the only way to go if you have the ability to do so.

[MineralMan]

4. There is that element, of course.

I've been self-employed since 1974. I've never made a huge amount of money, but have managed to survive.

[Rex]

5. Oh same here, I will never be wealthy

but do make enough to survive on.

[haele]

6. Welcome to the Mouse House of Profit$

ESPN personnel are going to continue to learn the hard way that there is no longer anything resembling the old ESPN; they're now Disney Sports, aka ESPN (trademark).
It wasn't as if Disney Corp didn't already have a huge track record of gobbling up attractive entertainment companies, taking full control of their assets and direction - and laying off all of the full-time talent that doesn't have big enough names to bring in viewers or advertisors.

Haele