ESPN plans to cut about 300 jobs company-wide

Roger Yu | USA TODAY

ESPN, the sports cable network owned by the Walt Disney Co., plans to cut about 300 jobs as it implements company-wide changes amid sluggish advertising sales.

The job cuts amount to about 4% of its workforce and will be completed in the coming days. The move is part of "a number of organizational changes at ESPN to better support our future goals," wrote ESPN President John Skipper in a memo Wednesday to staffers. Bloomberg News first reported about ESPN's layoff plans on Tuesday.

"The people who will be leaving us have been part of ESPN’s success, and they have our respect and appreciation for their contributions," he wrote. "We will be as supportive as we can during this transition, including providing a minimum of 60-days notice, a severance package reflective of their years of service, and outplacement benefits to help them find future employment.

The network has been battling rising programming costs and sluggish advertising sales as viewers increasingly ditch cable for streaming options. In August, Disney said its cable network unit’s operating income for the fiscal third quarter rose 7% to $2.1 billion but ESPN’s advertising revenue fell. “Lower advertising revenues reflected lower ratings and rates,” it said.

During a conference call with analysts for the August earnings report, Disney also lowered the outlook for the cable network unit's profit. The statement triggered a sell-off of its shares, leading to an 8% decline on August 5. The stock has since rebounded and it's up about 17% for the year.

ESPN's planned changes include "integrating emerging technology into all aspects" of its business and using more data and customization for advertisers to boost sales and marketing, Skipper said.