The number of laid off workers actually accounts for 11 percent of the league’s labor force. The retrenchment of workers primarily affected New York and New Jersey, approximately from every division including marketing, community relations, broadcasting, information technology, and player programs.
The layoff plan came to light a couple of weeks after the league locked out its players and ceased its operations. However, league officials firmly hold that the two consecutive events were not in any way related to each other.
Accordingly, NBA spokesperson Mike Bass claimed that the move was a result of the underlying issue of the league regarding its annual losses in the amount of $300,000,000.00. The said effort was meant to cut the league’s expenses, which had already surpassed its gross income, Bass added.
Moreover, the league’s deputy commissioner, Adam Silver, called the layoff as part of the NBA’s huge effort in restructuring its operations and creating a long-term sustainable business that is stable for its future growth.
The league expected to reduce its expenses by $50,000,000.00 in all areas through the previous effort of reducing workforce.
Unfortunately for the laid off workers, Bass likewise mentioned in his statement that the league has no plan of rehiring them when the crisis is over. Nevertheless, the league offered all affected employees with severance packages.
The league has been striving since the advent of economic recession way back in 2008. In fact, it had eliminated 275 jobs both at team and league levels since then. Also, it is currently consolidating offices and passing over its digital operations to another broadcasting company, the Turner Broadcasting.
Meanwhile, regarding the lockout, negotiations on a new labor deal is currently delayed. Although parties have expressed their desire to open a discussion, there was no bargaining session nor any meetings held since it began.
In such events in the employment industry, workers have the right to have representatives like a Los Angeles employment lawyer who could provide legal advice and who could guide them throughout their difficult situation.