By Gerry Smith | Bloomberg
Walt Disney Co.’s ESPN is implementing a staff reduction, affecting approximately 20 on-air employees, as part of its strategic plan to improve its financial standing and prepare for increased scrutiny from investors.
The affected employees have contracts that extend beyond Friday, and the network has committed to honoring those agreements, according to a confidential source. Among those being let go is Jeff Van Gundy, a commentator on ESPN’s NBA broadcasts, the source revealed.
These cuts are intended to bolster ESPN’s financial position. In the near future, Disney will begin to separately report the network’s quarterly results, subjecting the business to closer examination by Wall Street.
Similar to other TV channels, ESPN is grappling with the decline of cable-TV subscribers as more consumers opt for streaming services.
In the coming months, the network will also seek additional cost savings by renegotiating or not renewing certain contracts with on-air personalities.
“These difficult decisions, which were primarily made for the sake of overall efficiency rather than individual merit, will assist us in achieving our financial targets and ensuring future growth,” stated the network on Friday.
In April, ESPN carried out layoffs affecting several employees working behind the scenes and announced that on-air changes would follow. These cuts were part of Disney’s broader plan to eliminate around 7,000 jobs over the course of this year.
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