While ESPN is reportedly planning big cuts on its talent side, "no target for job eliminations has been set," and among employees who "don't work in front of cameras, at microphones or with bylines on the websites, no cuts are planned," according to a source cited by Dan Haar of the HARTFORD COURANT. Limiting the layoffs to TV, radio and online talent, "while still hiring elsewhere, could mean a smaller round of cuts" than the network had in '15, "when a broad round of job eliminations totaled about 300, including 200 in Connecticut, leaving talent mostly untouched" (HARTFORD COURANT, 3/7). In L.A., Stephen Battaglio reported ESPN will continue hiring behind-the-scenes personnel, "especially as it continues to develop digital properties aimed to reach consumers who are not subscribing." A talent agent source said that ESPN has "not revealed the extent" of any planned cuts to on-air talent. The source said that the cuts are "likely to target experienced mid-level reporters and commentators who earn higher salaries." Battaglio notes when a net "makes cuts to on-air talent, it is usually aimed at a specific cost number, rather than a head count" (L.A. TIMES, 3/7). VARIETY's Brian Steinberg cited a source as saying that ESPN "could in some cases opt not to renew lapsing contracts or even buy out existing employment agreements." The disclosure of the cuts "suggests ESPN has yet to right-size itself in a media economy in which more consumers have the option to pick and choose the outlets for which they pay" (VARIETY.com, 3/6). CNBC's Julia Boorstin cited a source as saying that the cuts are part of "reshaping ESPN for the digital generation, figuring out what kind of talent they need to have in place to create content for new products and new platforms" ("Closing Bell," CNBC, 3/6).
KEEPING COSTS DOWN: In N.Y., Claire Atkinson notes ESPN was "once able to pay 'name your price' fees to leagues, secure in the knowledge cable and satellite operators would fork over fat subscriber fees to cover their costs." Needham & Co. analyst Laura Martin said, "They have to keep laying off staff to hit the budget for the parent company. There are revenue falls as subscribers fall and sports rights increase in the double digits. The only cost they can get back is to cut people. Seventy percent of the revenue is from subscribers" (N.Y. POST, 3/7). In Minneapolis, Michael Rand wrote the reported layoffs "seem a little disingenuous -- a move designed to appease shareholders more than something truly necessary in the moment." Even though ESPN’s "subscriber base has declined steadily in recent years, their fee per user has gone up significantly in the same span" (STARTRIBUNE.com, 3/6).
