Affectionately referred to as the Worldwide Leader in Sports, ESPN has never had a problem attracting sports fans around the globe, as the network has been providing constant sports coverage since launching on September 7, 1979.
Multiple reports released on Monday, however, note that the sports superpower is cutting back on staff, as the network enters its first layoff period since 2009.
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According to Newsmax, many employees of the company have been relieved of their duties by the network as ESPN has prioritized continued growth while maintaining cost efficiency.
"We are implementing changes across the company to enhance our continued growth while smartly managing costs," ESPN said in a statement. "While difficult, we are confident that it will make us more competitive, innovative and productive."
The news comes as a shock to many, as ESPN is not exactly hurting financially.
As Sports Business Daily noted, ESPN recently finalized a deal with U.S. Open tennis that gives television rights to the network beginning in 2015. The deal will last for 11 years with the contract worth over $770 million. In addition to continued tennis coverage, ESPN is also set to launch the Southeastern Conference Network in 2014 for an undisclosed amount, according to SB Nation.
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ESPN has about 7,000 employees working within various divisions of the company and while the total number of personnel let go has not been officially announced, Deadspin's John Koblin is reporting the total number is somewhere between 300 and 400 workers.
With multiple rights deals still under their control for the foreseeable future -- including agreements with the National Football League, Major League Baseball, various college football conferences and Wimbledon tennis -- the layoffs came at a time most didn't expect because the network continues to expand and succeed on a daily basis.
The continued growth of cable television only helps the ESPN network as well since the channel comes standard with most cable providers at a cost of around $5 per customer.
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Senator John McCain's efforts to reform the cable television market have been well-documented in recent months and in an interview with Bloomberg Television, Senator McCain said he hopes to change the way people are presented their cable services as he wants each household to be able to select the channels they want to view while not paying for the ones they don't.
"Frankly, the most egregious of all is ESPN and there are many, many people like me, who do not like to watch ESPN yet they're faced with the prospect of paying about $5 more in their cable bill," McCain told Bloomberg Television. "They are paying more for these 100-some channel that they never watch."
To make matters more interesting, ESPN also has plans in the works to build a brand new 10,000 square-foot SportsCenter Studio. If plans follow through on time, the new set will be completed at some point next year.
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