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NBA lays off 114 league employees
Published in The Saudi Gazette on 16 - 07 - 2011

The NBA laid off about 114 people over the last two days, planned cost-cutting moves that a league spokesman said Thursday are “not a direct result of the lockout.”
The laid off employees represent about 11 percent of the league office workforce in New York, New Jersey and internationally.
Spokesman Mike Bass told the Associated Press the layoffs are “not a direct result of the lockout but rather a response to the same underlying issue; that is, the league's expenses far outpace our revenues.”
“The roughly 11 percent reduction in headcount from the league office is part of larger cost-cutting measures to reduce our costs by $50 million across all areas of our business,” Bass said.
The league said it lost $300 million this season after losing hundreds of millions in each previous year of the collective bargaining agreement that expired on June 30.
Owners locked out the players after the sides remained far apart in their final proposals. Commissioner David Stern said at the time it was too early to think about how it could affect staff, but acknowledged that the league would “have to go back and look at everything now with our operations.”
Adam Silver, the NBA's deputy commissioner, informed owners of the cuts in a memo, a copy of which was obtained by The New York Times. He called the layoffs “part of our larger efforts to restructure our operations and create a long-term sustainable business that is well-positioned for future growth.”
The league has also cut administrative costs, travel and new technology. It consolidated offices in Europe and Asia, closing offices in Paris and Tokyo, and is shutting down the studio in Secaucus, New Jersey, where it annually holds the draft lottery.
Even before this week's layoffs, the NBA had eliminated 275 positions at the team and league level since October 2008. That month, Commissioner David Stern, citing a “wobbly” economy, announced the elimination of 80 jobs, about 9 percent of the league's domestic work force at the time.


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