Hundreds of employees at the Walt Disney Company have been laid off across various divisions, sparking internal criticism directed at the high salaries of sports commentators Stephen A. Smith and Pat McAfee. Insiders at the company point to the substantial contracts of Smith, who recently signed a five-year, $100 million deal, and McAfee, reportedly nearing a contract worth over $60 million annually, as a source of frustration during a period of significant austerity.
One ABC source described the situation at ESPN as "crazy," suggesting that ESPN chair Jimmy Pitaro's focus on these two personalities has led to cuts being linked to their salaries. The layoffs have impacted on-air talent and contributors, including Ryan Clark, Karl Ravech, Tom Pelissero, Cam Newton, Charles Davis, and Bart Scott. Both McAfee and Smith have publicly addressed the layoffs. McAfee acknowledged the public narrative linking their lucrative deals to job losses.
"The boys and I are very proud of the work that we have done," McAfee said on his show, adding, "We hate any time this happens. Obviously, this is terrible. We don’t like that. But we are very honored that we are still partnered with ESPN and Disney for the good of sport and the future. I hate this."
Stephen A. Smith also drew attention when he expressed his dismay over Clark's departure on Instagram. A source familiar with McAfee's deal noted that the reported $60 million annual figure accounts for the fact that ESPN licenses McAfee's show, which is produced independently with a dedicated staff. This source also characterized Smith and McAfee as investments with proven track records, similar to the network's investments in rights for Major League Baseball and the National Football League.
Meanwhile, "The View," another program under the ABC umbrella, has also been affected by the company's cost-cutting measures. Reports indicate that several hosts took pay cuts for the current season. While Whoopi Goldberg remains the highest-paid, receiving a mid-seven-figure salary, co-host Alyssa Farah Griffin, whose salary is in the mid-six figures, had a request for a significant raise denied. Furthermore, the show's wardrobe budget has been substantially reduced.
"They’re all mad because they were all wearing really expensive designer clothes, and now it’s the same budget of a Wendy Williams-type show versus a marquee daytime show," a source familiar with the situation stated. "They keep downsizing and downsizing and downsizing."
Further reductions are anticipated as the new season approaches its September launch. The show has already seen changes, including a move from its previous studio to a smaller space and the cancellation of its annual Halloween show. Product integrations have become infrequent, impacting the show's revenue, while advertisers have reportedly shifted their business to competitors.
"There are definitely tensions with ABC," one source commented. Representatives for ESPN, ABC, and "The View" declined to comment on the matter.