By Matt Bonesteel
The Washington Post
In a message sent Wednesday to ESPN employees, network president John Skipper announced the company was beginning its next round of layoffs, a long-anticipated move that is expected to thin the ranks of ESPN’s on-air and online talent.
“A necessary component of managing change involves constantly evaluating how we best utilize all of our resources, and that sometimes involves difficult decisions,” Skipper wrote. “Our content strategy — primarily illustrated in recent months by melding distinct, personality-driven SportsCenter TV editions and digital-only efforts with our biggest sub-brand — still needs to go further, faster … and as always, must be efficient and nimble. 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. We will implement changes in our talent lineup this week. A limited number of other positions will also be affected and a handful of new jobs will be posted to fill various needs.”
According to Sports Illustrated’s Richard Deitsch, the layoffs could affect close to 100 employees, a larger number than originally expected. Jim Miller, who co-wrote a book on ESPN’s history, said Wednesday that “around 50 names you will recognize; another 50 you may not” will be losing their jobs. He tweeted:
“Hearing now from several espn employees who, despite advanced word, are ‘in shock’ and ‘frozen.’ This is an awful day for all in Bristol.”
Longtime NFL reporter Ed Werder was among the first to announce he had been laid off — on the eve of the NFL draft, no less (he had been assigned to cover the New Orleans Saints during the draft). If there was proof Wednesday that no one was safe, this was it. Werder was among the network’s most respected NFL voices. Werder tweeted:
“After 17 years reporting on #NFL, I’ve been informed that I’m being laid off by ESPN effective immediately. I have no plans to retire”
NHL columnist Scott Burnside also announced he had been let go, tweeting:
“After 13 years of sticks and pucks can share that as of today my tenure at ESPN is at a close. I look forward to the next adventure.”
Paul Kuharsky, who covered the Tennessee Titans for ESPN.com, also announced via Twitter he had been laid off earlier in the week:
“Knew cuts were coming. Sad to say nine great years at ESPN end for me in July. Please stay tuned to Midday180.”
The layoffs are an attempt by ESPN to evolve in the wake of a two-headed challenge: a declining subscriber base and skyrocketing rights fees. Over the past five years, the network has lost somewhere around 12 million subscribers as the viewing public looks for cheaper avenues for home entertainment. At the same time, the money ESPN has paid to the professional sports leagues to acquire their live events rose steadily. Last year, the network’s new nine-year agreement with the NBA to televise pro basketball games took effect. The reported cost to ESPN: somewhere around $1.5 billion per year, a massive increase over the previous deal. That’s on top of deals the network already had with the NFL ($1.9 billion annually), various NCAA conferences and the College Football Playoff (well over $1 billion), and Major League Baseball ($700 million). Some of those deals will be up for renewal in the not-so-distant future.
It’s the second round of layoffs at ESPN in less than two years. In October 2015, ESPN laid off around 300 people who worked behind the scenes. The network employs around 8,000 people.
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