ESPN will cut more than 40 on-air personalities in May

As more Americans cut the cable cord, ESPN has seen its subscriber numbers drop steadily, forcing Disney to demand cost-cutting from the “worldwide leader in sports.” It’s been widely reported since March that the next big round of ESPN layoffs will hit on-air talent, but now we know more on the timing: the cuts will begin on May 1, sources at ESPN tell Yahoo Finance.

ESPN will part ways with more than 40 people, all of them “talent,” a label that ESPN applies to radio hosts and writers (almost all of whom regularly do video or audio), not just traditional TV personalities. ESPN says it has 1,000 people in the category. Still, you can expect most of the people cut to be faces you’ve seen on TV. In some cases, ESPN may buy people out of existing long-term contracts—as Sports Illustrated points out, that is unusual.

The cuts will mostly be done by May 9, when Disney announces its quarterly earnings, but could extend until May 16, when ESPN presents its annual Upfronts in Manhattan.

In a statement, an ESPN spokesperson said the approaching cuts are about innovating to suit the needs of consumers: “Today’s fans consume content in many different ways and we are in a continuous process of adapting to change and improving what we do. Inevitably that has consequences for how we utilize our talent. We are confident that ESPN will continue to have a roster of talent that is unequaled in sports.”

ESPN’s last major layoff round was in 2015, when it cut around 300 employees—a much larger number than is coming in May, but this time it’s viewer-facing, recognizable names. Before that, ESPN cut around 300 people in 2013, so we see a recent pattern of big layoffs every two years.

The reasons are clear if you’ve followed the fallout of cord-cutting: ESPN (and Fox Sports 1 just as much) is seeing viewership fall and rights fees continue to rise. ESPN pays fat fees for the right to show Monday Night Football ($1.9 billion per year through 2021), NBA games ($1.4 billion through 2025) and the College Football Playoff ($600 million through 2026), to name just a few. Its total programming costs are up to $8 billion this year. The situation is not tenable.

Disney does not break out the financials of ESPN, but includes it in its media division. In Disney’s fourth quarter of 2016, revenue for its media division fell 3% and revenue for cable networks fell 6.8% year over year. Disney did say that ESPN had “lower advertising and affiliate revenue” in the quarter. In Disney’s first quarter of 2017, revenues in the media division fell 2% and operating income fell 4% year over year. Again, the causes were higher programming costs, fewer subscribers. In October of last year, ESPN had its worst month ever, losing 621,000 subscribers, according to Nielsen.