16:40 PST 3/3/2021
in
Alex Weprin
The company, which operates about 130 local stations and a number of regional sports networks, will lay off more than 550 employees as the pandemic continues to slow economic growth.
Sinclair Broadcast Group, one of the country’s largest local TV station owners, is laying off approximately 5% of its workforce, citing the economic impact of the new coronavirus pandemic.
“The impact of the COVID-19 pandemic continues to be felt in all sectors of the economy, something that can have a profound impact on a company as diverse as ours,” said a company spokesman. The Hollywood Reporter in a statement. “From local companies and advertisers to distributors and partners, no component of our business ecosystem has been fully protected from the impact of the global pandemic. In response to this, we are currently experiencing reductions in our entire workforce, including corporate headquarters, to ensure that we are well positioned for future success. “
Sinclair had 11,600 employees at the end of 2020, according to its 2020 annual report, so between 550-600 employees are likely to be affected.
The company operates about 130 local TV stations across the country and, in 2019, acquired regional sports networks (RSNs) that were previously owned by Fox. Live sports were severely damaged by the pandemic, giving a major blow to the RSNs, which depend almost entirely on games by local sports teams for their revenue. The company raised money for the RSNs by selling naming rights to them to casino operator Bally’s. In January, the company renamed its RSNs with the nickname “Bally Sports”.
And while 2020 saw record political revenue on local TV stations, with the pandemic continuing to impact the economy in 2021 and without major political disputes on the calendar, the economy has become a challenge.