DirecTV Lays Off Hundreds of Managers As Cord Cutting Accelerates

DirecTV is laying off hundreds of employees -- roughly 10% of its upper ranks -- as the company looks to reduce costs amid the heightened pain of cord cutting for pay-TV providers, according to people familiar with the matter. CNBC reports: Most of the job cuts will be at the manager level, the people said, citing an email to employees sent on Friday. Managers make up about half of DirecTV's fewer than 10,000 employees, one of the people said. The affected employees' last day will be Jan. 20. "The entire pay-TV industry is impacted by the secular decline and the increasing rates to secure and distribute programming," a DirecTV spokesperson said in a statement. "We're adjusting our operations costs to align with these changes and will continue to invest in new entertainment products and service enhancements." DirecTV and its peers have long been under pressure as customers cut the cord and opt for streaming services. The rate of cord cutting accelerated in the third quarter, according to MoffettNathanson. [...] DirecTV reportedly lost around 500,000 customers in its most recent quarter, according to ratings agency Fitch. Although DirecTV's losses slowed during the height of the pandemic, they recently accelerated to nearly 17%, according to MoffettNathanson.

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