Sports media giant ESPN is reportedly set to make major changes to its operations in the coming years. According to Puck News, the company plans to vacate its studio in New York’s South Street Seaport by the 2025 fiscal year. Additionally, there are suggestions that ESPN may shut down its Los Angeles production center, with employees either being relocated back to the East Coast or working remotely.
These potential moves are part of Disney’s cost-cutting strategy, with plans to reduce expenses by around $5.5 billion in the next few years. The budget cuts will include job reductions, operational cost trimming, and a decrease in spending on non-sports content. ESPN has already begun notifying its staff about impending layoffs, with over 300 employees reportedly let go so far this year. This downsizing is in line with Disney’s broader plan to eliminate 7,000 jobs across the company.
As part of the cost-cutting measures, ESPN is considering reducing its number of studios. This could involve relocating its South Street Seaport operations to the new ABC studios under construction in New York or bringing them back to ESPN’s headquarters.
The decision to restructure comes as ESPN’s chairman, Jimmy Pitaro, acknowledges the challenges posed by cord-cutting trends. Pitaro recently revealed at a summit in London that the network may have to launch its new streaming services earlier than originally planned. He emphasized the importance of timing and pricing in order to get the launch right. Pitaro also highlighted the success of ESPN+’s exclusive content, which has performed well for the platform.
ESPN appears to be seeking ways to cut costs while simultaneously diversifying its revenue streams. Consolidating studios would aid in reducing expenses, while the launch of a new streaming service could help generate additional income.
ESPN has not yet commented on the Puck report.
