About a week ago, Jack Dorsey came back as CEO and announced Twitter would cut 300 jobs. (Read: Twitter Cuts Over 300, New Startup Recruits Laid-Off Workers by @nicolejb)
This time ESPN decided to cut 300 of its employees as subscriber fee growth was slowing down.
This is close to 4% of the entire company's 8,000 workforce world-wide.
ESPN president John Skipper mentioned that the elimination of jobs was a part of "a number of organizational changes" at ESPN. He also delivered an internal message that read:
"We carefully considered and deliberated alternatives before making each decision. The people who will be leaving us have been part of ESPN’s success, and they have our respect and appreciation for their contributions."
The core of the problem lies behind their highest revenue source: cable and satellite subscriber fees. ESPN cannot no longer rely on this as their main source of revenue.
ESPN is still a highly profitable unit of Disney and Skipper announced that ESPN would continue to invest in technology to keep up with the rising demand in online and mobile viewing. Skipper also mentioned that they don't have any plans to cancel any programs or make any changes in on-air talent.