Walt Disney Co’s sports network ESPN is planning to cut up to 350 jobs, Bloomberg reported, citing people with knowledge of the matter. The job cuts would be announced to employees as early as Wednesday, Media said on Tuesday.
The job cuts come after Disney said in August it expects lower revenue due to a decline in subscribers and that ESPN had experienced “modest” subscriber losses as customers increasingly prefer digital platforms for entertainment.
The layoffs are seen as both a reaction to, and preparation for, wrenching changes in the cable television business. Cable channels like ESPN, which depend on subscriber fees, have been pinched by the small but growing number of viewers unsubscribing.
Back in August ESPN’s parent company, Disney, reduced its profit growth expectations for the network, citing marketplace challenges.
In October 2014, Disney and Time Warner Inc. signed nine-year programming accords that will bring the National Basketball Association $24 billion.