ESPN Layoffs: The Struggling Industry Giant Sheds On-Air Talent

High-profile names among ESPN layoffs

espn was wrapped in Teflon for many years, but big payouts for rights fees plus significant losses in their subscriber base were like punches to the gut and head, and now the company is trying to make sure they are strong enough to fight in the future, said James Andrew Miller, who wrote a book on ESPN and has contributed to The New York Times. Theyve decided one way to do this is to change their approach to content and rely more heavily on digital; this has enabled them to let go of a big chunk of their talent base.

In October 2015, ESPN laid off about 300 people, most of whom were not on camera. The network has been periodically culling its staff as it searches for ways to cut costs and adapts to changing consumer habits, with fans increasingly watching video clips on their smartphones at the expense of traditional highlight shows like SportsCenter. With ESPN locked into long-term contracts for programming rights with various sports leagues, savings must primarily come from a reduced staff.

In a letter to employees on Wednesday, ESPNs president, John Skipper, acknowledged the difficult decisions ahead and suggested what the network was looking for as it reshapes itself.

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, Mr. Skipper said in the statement.

In the most recent quarter, Disneys cable networks division reported $864 million in operating income, an 11 percent drop from the same period a year ago, with ESPN the reason for the entire decline, Disney said at the time. The company blamed higher N.B.A. and N.F.L. programming costs and lower ad sales for the weak results.

Earlier this month, Amazon paid $50 million for streaming rights to 10 of the N.F.L.s Thursday night games for the 2017 season or five times more than what Twitter paid a season ago, according to SportsBusiness Journal, which also reported that Facebook and YouTube bid on the package.

The ESPN layoffs come as Disney accelerates efforts to introduce an ESPN-branded subscription streaming service. The offering, expected this year and made possible by Disneys $1 billion purchase in 2016 of part of BamTech, Major League Baseballs streaming division, will include coverage of sports like hockey, tennis, cricket and college sports mostly rights that are owned by ESPN, but not televised.

You have to be willing to either create or experience some distribution as we migrate from what has been a more traditionally distributed world to a more nontraditional distribution world, Robert A. Iger, Disneys chief executive, told analysts on a conference call in February. And some of that were going to end up doing to ourselves, meaning that we understand there is disruption, but we believe we have to be a disrupter, too.

Photo A 2015 photo of the ESPN headquarters in Bristol, Conn. Credit Jessica Hill/Associated Press

Disney has long relied on ESPNs steadily climbing cable subscriber fees as a profit engine. But cable networks across the board have been losing viewers to online media, which has slowed growth, and Wall Street has responded unfavorably.

Despite assurances by Mr. Iger that ESPN remains strong, investors and analysts have remained concerned about upheaval in the television business. Viewership via satellite and cable services is declining as streaming options proliferate, and ESPN, the naysayers contend, is particularly exposed to a slowdown because Disney has locked itself into lavish, long-term payments for sports rights.

In a sign that Disney had done a good job preparing investors for the layoffs, shares climbed slightly in Wednesday morning trading.

Here are some of the ESPN employees who have made statements on social media so far (we will update this list):

Jay Crawford, SportsCenter anchor

Ed Werder, N.F.L. reporter

Jayson Stark, baseball writer

Trent Dilfer, N.F.L. analyst

Len Elmore, college basketball analyst

Dana ONeil, college basketball reporter

Eamonn Brennan, college basketball reporter

Danny Kanell, Russillo and Kanell radio host

Justin Verrier, N.B.A. reporter

Robin Lundberg, radio host

Calvin Watkins, N.B.A. reporter

Melissa Isaacson, columnist

Ted Miller, Pac-12 reporter

Jane McManus, writer

Ashley Fox, N.F.L. reporter

Ethan Strauss, N.B.A. reporter

Jeremy Crabtree, college football reporter

Brian Bennett, Big Ten reporter

Doug Padilla, baseball writer

Max Olson, college football reporter

C. L. Brown, college basketball reporter

Mike Goodman, soccer writer

Johnette Howard, columnist

Austin Ward, Big Ten football reporter

Joe McDonald, hockey writer

Pierre LeBrun, hockey writer

Scott Burnside, N.H.L. columnist

Jesse Temple, Big Ten football reporter

Jim Bowden, baseball analyst

Mark Saxon, baseball reporter

Brett McMurphy, college football reporter

Paul Kuharsky, Tennessee Titans writer

Derek Tyson, SEC recruiting analyst

Jean-Jacques Taylor, ESPNDallas

Brendan Fitzgerald, ESPNU host

Correction: April 26, 2017

An earlier version of this article misstated the length of ESPNs broadcasting deal with the N.F.L. It is for eight years, not 10.

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