ESPN cuts workforce by 10% due to pandemic

Approximately 300 people are being laid off at ESPN, sources tell Axios, and the company also plans to leave about 200 vacant positions unfilled, meaning the total workforce will be reduced by about 10%.

Between the lines: The cuts are attributed to the financial strain on the live sports and sports media industries due to the COVID-19 pandemic, according to an internal note from ESPN president James Pitaro to employees.

• Companies such as The Athletic have also had to implement layoffs.

Details: ESPN was already looking at strategies to ensure success “amidst tremendous disruption in how fans consume sports” prior to the pandemic, Pitaro wrote in the memo obtained by Axios. But COVID-19 — which has cost sports leagues $300 million — accelerated the need to act.

• Salary reductions, furloughs and budget cuts weren't enough, and it became clear that ESPN would need to serve sports fans in new ways, Pitaro noted.
• These include bolstering direct-to-consumer business strategies, digital and "innovative" television experiences.

By the numbers: ESPN will have roughly 5,000 employees post-cuts.

Be smart: Aside from live sports struggling, TV advertising — which ESPN relies on — has also taken a hit due to the economy's strain on brands.

The big picture: The pandemic has taken a massive toll on ESPN's parent company Disney, which has seen revenues drop dramatically due to the closure of many of its parks and resorts, as well as movie theaters.