ESPN 2023 layoffs, explained: How worldwide leader fits into Bob Iger, Disney’s $5.5B budget cuts

By | June 30, 2023

According to a report by Andrew Marchand of The New York Post, ESPN is canceling its national morning radio show featuring Keyshawn Johnson, Jay Williams and Max Kellerman.

Though none of those on-air talents is expected to be laid off — for now — the move to cut the radio show is part of an ongoing series of cost-cutting measures at the worldwide leader in sports. The extent of those measures, which includes layoffs of on-air talent and management, remains to be seen.

For the second time in three years, ESPN is in the midst of a significant round of layoffs as part of an organizational restructure by its parent company, Disney. Bob Iger, who came out of retirement in November 2022 to serve a second stint as the company’s CEO, has included ESPN as part of sweeping cost-cutting measures.

MORE: Why is Pat McAfee going to ESPN?

Here’s everything you need to know about ESPN’s layoffs, including how they fit into Disney’s budget cuts and notable talent leaving the company:

Disney budget cuts, explained

According to a Feb. 8 report by The New York Times, Iger unveiled a new operating structure for Disney that intended to cut costs by $5.5 billion globally, including the elimination of roughly 7,000 jobs (roughly 4 percent of its global workforce).

“We must return creativity to the center of the company, increase accountability, improve results and ensure the quality of our content and experiences,” Iger said in an earnings-related conference call, per the Times.

The cost-cutting measures were announced amid streaming losses by Disney-owned platforms Disney+, Hulu and ESPN+. According to a quarterly earnings report released on May 10 — the first full quarter under Iger’s leadership — Disney suffered less streaming-related losses than projected, and reported a net income of $1.49 billion, compared to $597 million the year prior (via CNBC).

How ESPN layoffs fit into Disney budget cuts

The NYT reported that, as part of Disney’s restructure, ESPN and its streaming offshoot ESPN+ were made into a stand-alone division. The restructure provided a clearer look at ESPN’s value to the company, though the Times reported at the time experts interpreted it as a way to make it “easier to spin off or sell” the company.

“We did not do it for that purpose,” Iger said at the time. “ESPN continues to create real value for us. We just have to figure out how to monetize it in a disrupting world.”

Indeed, ESPN — and by extension, Disney — has shown a willingness to invest in notable on-air talent. That includes Pat McAfee, whose podcast “The Pat McAfee Show” was recently acquired by the company. He already was a recurring panelist on ESPN’s “College GameDay.”

MORE: Pat McAfee ESPN contract details

Stephen A. Smith, host of ESPN’s “First Take,” also said he wants Shannon Sharpe — formerly of FS1’s “Undisputed” show — to join him at the worldwide leader in sports.

According to an April 19 report by CNBC, ESPN began layoffs — including on-air personality and management — in late April. The sports company appears to be part of the second round of layoffs, after Disney made cuts that included its metaverse strategies unit and part of its Beijing office.

ESPN also experienced 300 layoffs in 2020 as part of a Disney shift in strategy to prioritize direct-to-consumer streaming. The company also experienced roughly 350 layoffs in 2015.

ESPN layoffs 2023 list, updates

Friday, June 30: Around 20 on-air personalities are expected to be laid off by ESPN on Friday, Andrew Marchand of the New York Post reported, with the network’s NFL, NBA and radio divisions in line for cuts. Marchand said ESPN issued a five-paragraph memo to employees Friday morning that cuts were imminent.

Friday, June 23: Two-time Super Bowl champion and NFL analyst Rob Ninkovich will not return to ESPN after his contract with the company expires at the end of the summer, per McCarthy of FOS. He joined the company in 2019 and was featured on numerous as studio shows such as “NFL Live,” “Get Up” and “SportsCenter.”

Thursday, June 22: ESPN’s plan to cancel its national morning radio show featuring Johnson, Williams and Kellerman is part of ESPN’s downsizing efforts, as mandated by Disney. Per Marchand, ESPN’s cancellation of the show does not mean Johnson or Williams’ futures with the company are in danger, though certainly “in flux.”

The Post reports Johnson signed a four-year, $18 million contract in 2022.

Kellerman, however, is reportedly in jeopardy: His radio show has been canceled and, per Marchand, his “This Just In” time slot is scheduled to be taken over by “The Pat McAfee Show.”

MORE: Why ‘SportsCenter’ co-anchor Neil Everett is leaving ESPN

Friday, June 9: Neil Everett, co-host of the late-night edition of “SportsCenter” since 2009, announced he was leaving ESPN amid budget cuts. According to two different sources close to the situation, Everett’s exit was linked to one of two reasons: Either ESPN offered him a low-ball contract similar to Kenny Mayne’s in July 2021, or the company simply did not renew his contract.

Tuesday, June 6: Chris Chelios, an in-studio NHL analyst for ESPN since 2021, will not be retained after his contract expires with the company, per Michael McCarthy and A.J. Perez of Front Office Sports. The IIHF Hall of Famer and three-time Stanley Cup champion rejoined the company after it purchased NHL broadcast rights ahead of the 2021-22 season.

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