Walt Disney Co. ’s ESPN is reducing its workforce by about 10% through a combination of layoffs and attrition of employees, including remote workers, according to a person familiar with the matter.

The cuts come as ESPN and Disney deal with challenges posed by the coronavirus pandemic, which has resulted in lost ad revenue from canceled or delayed sporting events. Disney’s theme parks, filmed entertainment and cruise divisions have all suffered this year as the pandemic stymied travel and moviegoing across the world.

ESPN is eliminating about 500 jobs by laying off 300 employees and closing 200 open positions, according to a memo sent to staffers from ESPN President Jimmy Pitaro. Mr. Pitaro said in his memo that the cuts were the result of a reorganization plan focused on digital streaming that predated the pandemic but was accelerated in recent months.

“The speed at which change is occurring requires great urgency, and we must now deliver on serving sports fans in a myriad of new ways,” Mr. Pitaro wrote in the memo, a copy of which was seen by The Wall Street Journal.

The reorganization will affect people who produce games for ESPN on the road, the person said, in addition to some on-camera talent whose contracts won’t be renewed. ESPN paid less for production costs during the pandemic, in part because it produced more games from network headquarters in Bristol, Conn.

This post first appeared on wsj.com

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