The NBA has laid off 114 employees, some 11 percent of its workforce, reports Brian Mahoney of the Associated Press. The pink slips came in the league’s New York, New Jersey and international field offices. Mahoney reports that the NBA said that the layoffs were not a direct result of a lockout the league and its owners instituted almost two weeks ago.
NBA Lockout Leads To Substantial Layoffs At League Office
According to Mahoney, league spokesman Mike Bass said that the layoffs are “a response to the underlying issue that the league’s expenses far outpace our revenues.” It’s unclear exactly how much money the layoffs will save the league.
In the throes of the global economic crisis in 2008, the NBA eliminated 80 jobs, roughly nine percent of its workforce. NBA revenues have boomed in recent years, but non-player salary expenses have far outpaced revenue growth. It’s unclear what share of these expenses are piled up by the league office.
UPDATE: Here’s the full statement from the NBA’s Bass:
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% 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.
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