The Sports Illustrated (SI) publisher has informed its employees about impending layoffs, potentially affecting a substantial number of employees, or even the entire staff. The layoffs are said to be a part of cost-cutting measures aimed at initiating a transformative shift towards a more streamlined business model, reported Front Office Sports.
This decision follows the revocation of the license to use the iconic brand’s name in both print and digital formats. In an email sent to employees on 19 January, 2024, the Arena Group, the parent company of Sports Illustrated and related entities, mentioned that Authentic Brands Group (ABG) has taken away its permission to market the brand.
The email clarified that since the license is being revoked, the company will be letting go of staff working on its SI brand. However, ABG stated that it plans to continue the SI brand, but it’s uncertain whether the current staff will be involved in the future plans.
The Authentic Brands Group acknowledged terminating The Arena Group’s license due to the latter’s failure to pay the quarterly license fee. However, it assured that the brand would persist.
The union representing SI’s staff expressed in a tweet that it had been notified of The Arena Group’s intention to lay off a significant, or may be even all the union-represented staff members. The union highlighted the challenging four years under Arena Group’s stewardship and called on ABG to ensure the continued publication of SI, which has served its audience for nearly 70 years.
While the Group stated ongoing negotiations with ABG and its commitment to producing Sports Illustrated until resolutions are reached, it also expressed hope for a smooth transition if another company takes over.