February 3, 2023

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DirecTV layoffs: Management is losing 10% of employees

2 min read

DirecTV is furloughing hundreds of workers, telling workers that 10% of managers will lose their jobs in a round of layoffs aimed at cutting costs amid ongoing cord-cutting customer losses.

DirecTV’s cutbacks were first reported by CNBC. Employees were notified of the layoffs in a Jan. 6 memo; Most of the cuts affect managers, who make up half of DirecTV’s roughly 10,000 employees.

“The entire pay-TV industry has been impacted by secular declines and rising rates for securing and distributing programming,” a DirecTV representative said in a statement. diversity. “We are adjusting our operating costs to align with these changes and will continue to invest in the development of new entertainment products and services.”

DirecTV sold WarnerMedia last year, as part of its exit from the entertainment business from AT&T in an August 2021 deal with TPG Capital. As a privately held company, DirecTV no longer reports financial or customer statistics. But like the rest of the pay-TV biz, the operator has faced steady decline for several years amid a surge in cord-cutters.

DirecTV lost about 400,000 subscribers in the third quarter of 2022, down from an estimated 13.5 million subscribers, according to Leichman Research Group. In addition to its core satellite TV service, the company sells DirecTV Stream, an over-the-top pay TV package.

In a change likely to result in more sub cancellations, DirecTV is losing its games package outside the NFL’s Sunday ticket market 28 years after selling it as part of its pay-TV service. Beginning with the 2023 season, YouTube will be the exclusive U.S. distributor of Sunday tickets, signing a seven-year deal under which it will reportedly pay the league $2 billion-$2.5 billion per year. According to industry estimates, DirecTV recently added 1.5 million to 2 million subscribers to the package.

Since its separation from AT&T, DirecTV has taken several steps to reduce operating costs across the company, including maintaining a “virtual-first” management workforce as well as trying to keep a lid on rising programming costs in negotiations with TV networks.

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