Hundreds of workers are affected in a staff reduction conducted by DirecTV, as they lay off 10% of its upper marks workforce. Layoffs are already set to take effect on January 20 however, employees were only notified a week ago.
View of DirecTV broadcast satellite service provider logo at its headquarters in Caracas on May 19, 2020. - US telecommunications giant AT&T announced on Tuesday its "immediate" withdrawal from the pay television market in Venezuela, where it offered the DirecTV satellite platform, due to the impossibility of complying with the legal requirements of both countries. (Photo by Federico PARRA / AFP) (Photo by FEDERICO PARRA/AFP via Getty Images)
FEDERICO PARRA/AFP via Getty Images
(Photo : FEDERICO PARRA/AFP via Getty Images) View of DirecTV broadcast satellite service provider logo at its headquarters in Caracas on May 19, 2020. - US telecommunications giant AT&T announced on Tuesday its "immediate" withdrawal from the pay television market in Venezuela, where it offered the DirecTV satellite platform, due to the impossibility of complying with the legal requirements of both countries.
Laying Off Managers and Employees
Over the recent years, satellite TV providers like DirecTV and Dish have been experiencing the decline of the highest pay-TV as cord-cutting increases day by day.
DirecTV enters the new year with a rough start as the company will be conducting layoffs on January 20th. As per Deadline's report, 10% of workers with managerial positions will be affected by the cuts. This move is an effort of the company to reduce costs amid the increasing cord-cutting for pay-TV providers.
A spokesperson of the company said in a statement they are not the only company affected by this secular decline in the industry, as several companies were also impacted by the increasing rates to secure and distribute programming.
"We're adjusting our operations costs to align with these changes and will continue to invest in new entertainment products and service enhancements," the statement added. The company has been under pressure as customers cut the cord and now prefer streaming services.
Among the offerings of the company are the primary satellite services, the U-verse cable system, and the internet-delivered DirecTV stream. LA Times reported that the company became a private company last 2021, as AT&T entered a deal with TPG to spin off the business and its divisions valued at $16.5 billion.
As a private company, DirecTV does not report subscriber numbers, but it is no secret that their subscriber count has been declining over the past decade. CNBC reported that the company has about 13 million customers and lost around 500,000 in the recent quarter.
Especially since the Sunday Ticket deal is now expected to be worth $2.5 billion - $3 billion annually, large streaming sites or even tech giants are the ones who can only afford to pay these costs. Additionally, several companies in the industry have also been struggling lately due to economic challenges.
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