Layoffs Begin At ESPN In CT: New Details Just Released

BRISTOL, CT — Notifications have begun for ESPN employees whose jobs have been cut as part of Disney's strategy to slash thousands of jobs and cut costs by billions, Chief Jimmy Pitaro announced in a memo shared with employees and obtained by The Hollywood Reporter Monday.

"As [Disney CEO] Bob Iger previously said, Disney is reducing its workforce by approximately 7,000 jobs as part of a strategic and streamlined realignment," Pitaro wrote in the memo. "Today I am sharing the difficult news that we are beginning to notify ESPN employees whose positions are impacted."

Sources told The Hollywood Reporter that the latest rounds of layoffs at Disney began Monday and will continue through Thursday. In addition to the layoffs at ESPN, employees will be cut from Disney Entertainment, Disney Parks, Experiences and Products and elsewhere, impacting employees in California, New York, Connecticut and other places, the outlet reported.

By the end of the week, Disney is expected to have cut about 4,000 jobs, the sources said.

Iger announced the restructuring of the company in February, with ESPN becoming a standalone division along with its theme parks and entertainment divisions, CNBC reported in February. Iger told employees and Wall Street analysts that the layoffs would cut $5.5 billion in costs for the company, according to the outlet.

During the first round of layoffs, which began in late March, the 50-strong metaverse unit at Disney was dismantled, the Wall Street Journal reported. The division, which had around 50 employees, was tasked with finding ways to tell interactive stories in emerging technological formats.

Speaking on his March of Ourand podcast Wednesday, New York Post sports media columnist Andrew Marchand speculated that there will be three rounds of layoffs at ESPN, with even elite on-air talent who get to keep their positions facing huge salary cuts.

"I do think they're going to go to some other people who make big numbers and say, 'Well, you can stay, but we're going to cut you in half,'" Marchand said on the podcast episode. "People are going to have decisions to make on that. They might just end up leaving and getting paid their full contract—that's a tough decision to make, to have to work and make less or leave and make your full number. Where does that leave you going forward?"

According to the source who spoke with The Hollywood Reporter, on-air talent is not expected to be significantly impacted by the cuts this week or during the third round, though they echoed Marchand's belief that big changes are still coming for the network's elite—including renewing some deals, cutting others, and making other tweaks to its roster of hosts and contributors.

Totaling 3,800 employees, ESPN ranked No.21 on a list of the state’s largest employers published by Hartford Business Journal in January.