ESPN
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ESPN to begin layoffs early next week as part of parent company disneyThe company is trying to cut costs, according to people familiar with the matter.
The layoffs will include some on-air talent and executives, said the people, who spoke on condition of anonymity because the discussions are private. The number of layoffs at ESPN is unclear, and the decision-making process remains fluid.
An ESPN spokesman declined to comment.
Disney will cut 7,000 jobs in three rounds, with the second round to follow next week, the people said.The company will also lay off about 15% of its entertainment division’s workforce next week, Bloomberg this week’s report.
Disney’s first round of layoffs came last month and included its Metaverse Strategy division and some of its businesses Beijing Office.
Disney is cutting costs for Chief Executive Bob Iger as it tries to boost free cash flow as streaming losses persist. ESPN interested in renewing contract with NBA, may have to pay hefty premium $1.4 billion per year It has paid the league royalties. Renewal discussions with the NBA are already underway, according to a person familiar with the matter.
Disney said earlier this year that it plans to $5.5 billion in cost cutsincluding $3 billion in content spending.
ESPN laid off about 300 employees in 2020.
Disney restructured earlier this year, and ESPN will release its financials for the first time as its own division. The change will provide a clearer window into ESPN’s business.
Disney will report earnings on May 10.
WATCH: Disney kills Metaverse division amid layoffs
