Disney-Owned ESPN Announces Major Shakeup

A view of the logo during ESPN The Party on in San Francisco on Feb. 5, 2016. (Mike Windle/Getty Images for ESPN)

ESPN announced Friday that it will part ways with some of its on-air personalities in a bid to cut costs, with some reports indicating that well-known sports personalities are among those departing the Disney-owned channel.

“Given the current environment, ESPN has determined it necessary to identify some additional cost savings in the area of public-facing commentator salaries, and that process has begun,” ESPN said in a statement. “This exercise will include a small group of job cuts in the short-term and an ongoing focus on managing costs when we negotiate individual contract renewals in the months ahead.”

The company added that the cuts are “an extremely challenging process, involving individuals who have had tremendous impact on our company,” adding, “These difficult decisions, based more on overall efficiency than merit, will help us meet our financial targets and ensure future growth.”

The statement, however, did not name the “public-facing commentator[s]” who would be axed.

Suzy Kolber, a longtime ESPN host, wrote on Twitter that she is among those who were terminated.

“Today I join the many hard-working colleagues who have been laid off,” Ms. Kolber wrote, posting a photo of herself. “Heartbreaking-but 27 years at ESPN was a good run.”

ESPN’s top NBA color commentator, former New York Knicks head coach Jeff Van Gundy, is also leaving the channel, according to reports. Unconfirmed reports also said that former NBA player-turned-commentator Jalen Rose, former NFL star Keyshawn Johnson, and former quarterback Steve Young were also among those who were laid off Friday.

Van Gundy has been calling NBA Finals games for ABC and ESPN since 2017. Mr. Rose, meanwhile, has been featured across the network, often making racially charged claims against certain white sports figures.

The sports network also canceled its national morning radio show with Max Kellerman, Jay Williams, and Johnson, the New York Post reported, citing anonymous sources.

ESPN baseball reporter Joon Lee announced that his time at the network has come to a close as well. “My time at ESPN is over Incredibly grateful for all the opportunities I received over the last four-plus years. I got to live out my literal childhood dream job, worked with some of the most talented people and made so many friends. Really excited to see whatever comes next,” he wrote.

ESPN announced in May that it had hired Pat McAfee, a former NFL punter-turned-social media commentator, according to a news release. The NY Post reported that he will be making about $85 million over five years.

Layoffs

Earlier in 2023, Disney CEO Bob Iger said that his media company, which also owns ABC, would have to slash about 7,000 jobs in a bid to stay profitable. At the time, Mr. Iger said that the move was part of a broader restructuring that is designed to save the firm billions of dollars.

“This week, we begin notifying employees whose positions are impacted by the company’s workforce reductions,” Mr. Iger wrote in an internal memo in March obtained by CNBC. “Leaders will be communicating the news directly to the first group of impacted employees over the next four days. A second, larger round of notifications will happen in April with several thousand more staff reductions, and we expect to commence the final round of notifications before the beginning of the summer to reach our 7,000-job target.”

Disney is following the lead of other legacy media firms such as Warner Bros. Discovery in cutting spending and costs amid widespread economic uncertainty, higher interest rates, and sticky inflation.

Disney has also suffered by wading into socio-political issues when it commented negatively on a Florida legislature-passed law that prohibits discussing topics such as sexuality and gender identity in public schools from kindergarten through the third grade. Some conservatives last year called for a boycott of the company, which operates a sprawling theme park in central Florida.

“The difficult reality of many colleagues and friends leaving Disney is not something we take lightly. This company is home to the most talented and dedicated employees in the world, and so many of you bring a lifelong passion for Disney to your work here,” Mr. Iger’s memo also said. “That’s part of what makes working at Disney so special. It also makes it all the more difficult to say goodbye to wonderful people we care about. I want to offer my sincere thanks and appreciation to every departing employee for your numerous contributions and your devotion to this beloved company.”