US sports broadcaster ESPN has said it will cut about 300 jobs, with chief executive John Skipper stating that while the demand for sports remains undiminished, the landscape the company operates in has “never been more complex.”
The job cuts represent around four per cent of ESPN’s staff, with Skipper stating in a memo to employees posted online that affected employees will get a minimum of 60 days' notice, severance packages and job search assistance.
ESPN’s parent company Disney in August reduced its television profit outlook because of a loss of ESPN subscribers. ESPN receives money from US cable and satellite companies that carry its channels, and is the most expensive of the basic pay-television channels.
Data provider SNL Kagan has estimated that ESPN costs cable and satellite television companies $6.61 (€5.81) per monthly subscriber, with the traditional cable bundling model coming under pressure from viewers migrating to online services.
“These changes are part of a broad strategy to ensure we’re in position to make the most of new opportunities to build the future of ESPN,” Skipper (pictured) said.
He added: “I realise this process will be difficult – for everyone – but we believe the steps we are taking will ultimately create important competitive advantages for our business over the long term.”