Disney and ESPN Tech Layoffs Taking Place Months Ahead of New Streaming Service Launch
ESPN making cuts in their Tech division just ahead of a new streaming service launch seems strange.
The Walt Disney Company is making more cuts, resulting in layoffs in the company’s product and technology division - a surprising move given some new major technology developments set to launch in the coming months.
What’s Happening:
- Reports indicate that more cuts are taking place at The Walt Disney Company, with a number of layoffs in the company’s Product and Technology Division.
- The cuts represent less than 2% of the product and technology workforce at Disney Entertainment and ESPN.
- The reports state that this move is more of a rebalancing act of resources, as Disney continues to invest and hire in Products and Technology, with the area a critical one for the company’s growth plans.
- These cuts are only the latest in what seems like an ongoing process at the company, with several hundred laid off globally earlier this month in positions in both film and television, from publicity, casting, development, and corporate finance operations.
- Earlier cuts in March also took place, laying off roughly 6% of ABC News Group and Disney Entertainment Network’s staff. 75 staff positions were eliminated at ABC Owned Stations back in October.
- October also marks the combining of ABC Signature and 20th Television, which also saw further cuts take place.
- The cuts in the technology division come at a time when Disney has implemented password-sharing enforcements, as well as the forthcoming launch of the new ESPN streaming service this fall.
A Streaming Surprise:
- Cutting in the technology department is a strange move at this point, with the new ESPN app set to launch later this year.
- This rollout marks a major shift: ESPN finally goes fully Direct-to-Consumer (or DTC), offering a real alternative to cable. The upgraded app, personalization, and embedding of ESPN Bet all represent a big push toward a one-stop sports platform.
- Users of the new app can reportedly expect a revamped interface across mobile and connected-TV devices featuring an AI-powered SportsCenter home feed tailored to your favorite teams and sports, Integrated ESPN Fantasy & betting tools via ESPN Bet sportsbook, smart stats, merchandising, and ticketing features directly in the app.
- With all of these changes, why would they want to make cuts in that division, just ahead of its launch? For more information about the soon-to-arrive ESPN app, be sure to check out our page here.
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