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Television Businesses

DirecTV Lays Off Hundreds of Managers As Cord Cutting Accelerates (cnbc.com) 51

DirecTV is laying off hundreds of employees -- roughly 10% of its upper ranks -- as the company looks to reduce costs amid the heightened pain of cord cutting for pay-TV providers, according to people familiar with the matter. CNBC reports: Most of the job cuts will be at the manager level, the people said, citing an email to employees sent on Friday. Managers make up about half of DirecTV's fewer than 10,000 employees, one of the people said. The affected employees' last day will be Jan. 20. "The entire pay-TV industry is impacted by the secular decline and the increasing rates to secure and distribute programming," a DirecTV spokesperson said in a statement. "We're adjusting our operations costs to align with these changes and will continue to invest in new entertainment products and service enhancements."

DirecTV and its peers have long been under pressure as customers cut the cord and opt for streaming services. The rate of cord cutting accelerated in the third quarter, according to MoffettNathanson. [...] DirecTV reportedly lost around 500,000 customers in its most recent quarter, according to ratings agency Fitch. Although DirecTV's losses slowed during the height of the pandemic, they recently accelerated to nearly 17%, according to MoffettNathanson.

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DirecTV Lays Off Hundreds of Managers As Cord Cutting Accelerates

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  • by thesjaakspoiler ( 4782965 ) on Wednesday January 11, 2023 @10:09PM (#63201520)

    So recognizable.
    Lately my company is also getting polluted with too many managers that are not actually doing something usefull.

    • by ozmartian ( 5754788 ) on Wednesday January 11, 2023 @10:13PM (#63201538) Homepage
      At least in this case they are trimming off the fat where it should be.
      • Nah, usually these sort of layoffs hit front line managers first. Usually a few quarters after they've already dumped all the staff for them to manager. It's the project and program managers in between the front line and the VPs that are the dead weight, and the second to last to go.

        • by DarkOx ( 621550 ) on Thursday January 12, 2023 @09:24AM (#63202566) Journal

          I know its fun to hate on management and the MBAs in general. However I think we get somewhat off impression looking at companies like Direct TV that facing more of a obsolesce problem than operational ones.

          In better positioned company you need the VPs and Program managers to make the strategic changes to products and services to keep the company viable in the market place. This is a small team that needs trust to operate and ideally has some kind of shared vision, and tribal experience with the organization. It would be difficult to replace these people and have them be immediately effective. It makes sense these folks would be near the last to go because those lower rungs really are more replaceable 'cogs'. How hard would it be hire some guys to make sure some other guys show up and fill-out their timesheets properly while they drive around in vans in screw dishes to metal posts? - not hard.

          This is not say that companies like DirectTV don't already have the wrong people in those director and VP positions. That happens and it ruins companies. In cases where they have changed corporate parents a few times and had their strategic vision dictated by outside sources its likely this is case. DirectTV is a good example here the people in those positions are probably not the ones who understood how to add value to the product and adapt it a changing market but rather the ones who AT&T got the most cooperation from turning it into a add-on for their other products before dumping the whole org again when it no longer helped them make sales.

          At this point it probably does not matter if those folks are good or bad at their jobs, understand or don't understand where the home media market is headed. DirectTV is a dinosaur in terms of their core product. They have got no diversity in their portfolio to shift focus into, they don't really have tech or capital assets that can be leveraged into other businesses that I can see - though i have not gone through their 10Q and aint interested enough to do it. My guess is they are well and truly fucked, and its just circle the drain time.

          But consider a company that is not circling the drain - like Coca Cola. Where is the HR value is the guys at the subsidiary bottlers packing the pallets and the people that directly manage them, or are those positions that could be re-filled rather quickly if needed? Is it the people who recognize the market wants less cornsyrup solutions, and more flavored seltzer products? Which group keeps the company healthy long term?

          • How hard would it be hire some guys to make sure some other guys show up and fill-out their timesheets properly while they drive around in vans in screw dishes to metal posts? - not hard.

            Those people *the ones that drive around in vans and screw dishes into metal posts" or their supervisors/managers do not exist. At least not as part of DirecTV. They never did.

            • When I worked there in their DSL division (yeah, LONG time ago) it was regional third party contractors doing truck rolls to customers and not actual DTV employees. And as far as I know, DTV never installed the dish for you. You had to DIY or hire someone to do it.

    • most companies I work at that have a lot of "managers" are promoting line workers to management while making them keep doing line work.

      In some companies this is to get them raises so they don't leave. In less desirable companies it's to make them think they're moving up without paying them much if anything more and so get more work out of them.
      • Yep. Thats the classic new hat promotion. Giving away a title like CTO when you only manage 6 people is more about email signatures than much else. Just dont update your LinkedIn profile or your daily spam will increase 6 fold.
    • "Managers make up about half of DirecTV's fewer than 10,000 employees,"

      That's the problem, half of the employees are managers, WTF?

  • by Joe_Dragon ( 2206452 ) on Wednesday January 11, 2023 @10:12PM (#63201532)

    50% Managers? that seems very bloated

  • "Managers make up about half of DirecTV's fewer than 10,000 employees"

    Wait, hold up. How is that even possible?

    • Re: Whoa (Score:4, Informative)

      by superposed ( 308216 ) on Wednesday January 11, 2023 @11:26PM (#63201744)

      If you have two employees per manager it would just about work out, e.g. 16 workers managed by 8 managers, managed by 4 managers, managed by 2 managers, managed by 1 manager. In that structure, total managers equals total workers minus 1. But it sounds pretty insane.

    • I'm guessing a lot of these managers are managing other managers. When you add multiple layers of management on top of each other, with grunts only being at the very bottom layer, you end up with a high proportion of managers.

      I used to work for a company that was adjacent to the satellite TV industry. I never had any contacts at DirecTV but I did have a few at Dish Network. Nepotism and mismanagement run rampant at that kind of company. Even when there is work to do, there are people who simply refuse to do

  • We need to MAKE NFL TICKET FAIL on youtube so bad that they are forced to put it back on directv

  • by todmanic ( 10009334 ) on Wednesday January 11, 2023 @10:41PM (#63201618)
    "The entire pay-TV industry is impacted by the secular decline..." Secular? So we can assume the monasteries and nunneries still have pay TV? The Pope and Jimmy Swaggert? Ye must have faith to use pay teevee, merrily I sayith unto thee. Yea, heathens are those who would cut the cord of pay TV. Hosanna.
  • They are given the title of management professional so they can't unionize
  • Or maybe even a mercy layoff for any remaining original DirecTV employees, may they retire in peace.

  • by istartedi ( 132515 ) on Thursday January 12, 2023 @12:21AM (#63201838) Journal

    It seems like DTV sends me a mailer at least once a week. Maybe it doesn't cost that much, but stuffing my mailbox on the regular isn't going to make me shell out for a dish on my roof. The previous owners had it, and it's in the crawl space under the house. I removed it from the front deck because it was a view-obstructing eyesore. Nobody ever came around asking for it, so I guess you own it? I dunno. Maybe that's why they mail bomb me, because they think the infrastructure is still there. They also put a metal post in the side yard (previous install?), and it wasn't done right. You can wiggle the post. You gotta go a lot deeper and use more concrete to do it right.

    • That was always the "selling point" of DirecTV. You go to WallyWorld and buy a dish and reciever. You install it. You call them on the phone to activate it.

      This is unlike Cable where you have to call the Cable Company and they eventually get around to coming and installing their crap which you have to rent at exorbitant prices (thus paying for about four times over per year) and takes weeks or months to from the time the idea pops into your head (I think I'll subscribe to Cable) until it is available to

      • Where do you live, DirecTV has company trucks here (north Florida). They do the installs and service calls. Millions of Americans are in the same position as me, no cord to cut. We have to use satellites for TV and Internet. No 5G either.
  • by rbrander ( 73222 ) on Thursday January 12, 2023 @01:57AM (#63201938) Homepage

    As related in my lecture to the Calgary Unix User's Group : http://brander.ca/cordcutcuug/ [brander.ca] ...what got me,finally, was not the value of the channels, it was that their monopoly on what DVR could connect to their content, shifted from quite good HDDVRs in the early 2000s, when they were trying to get people to switch to HD resolution, to the worst DVR that would barely claim to work. Endless glitches and reboots.

    Cord-cutting to use over-the-air, and your favourite Linux, Win, or Mac box as the DVR - which produces standard .MPG files you can save, compress, edit - was worth it for that alone. Not to mention, over-the-air is free, covers your news, local sports, and what are usually the most-popular water-cooler shows. That and a stream or two keeps our evenings full of choice.

    • When I first subscribed to DirectTV in 2008, my DVR was fantastic. Five years and what I believe was a literal OS change later, it took a fucking second just to un-pause playback, and 2 or 3 seconds to move to the next page in the program guide. It also stuttered and dropped frames in both live and recorded tv.

      I think that sometime around 2011, DirecTV MASSIVELY increased their GOP length, and/or made some change to the container stream format that necessitated rewriting the streams on the floor before pass

    • by Bert64 ( 520050 )

      This.
      The equipment provided by the networks, wether cable or satellite tends to be absolute garbage. In many cases you are forced to use the equipment they supply, so this reduces the incentive for them to make any improvements to it too.

      If you have an open standard like OTA, there is a competitive market with hundreds of suppliers of compatible equipment. There are standards for satellite (DVB-S) and cable too, but generally only for the free channels and some networks ignore the standards entirely.

    • by AmiMoJo ( 196126 )

      It's a lot of hassle. I find it easiest to just get stuff from The Pirate Bay. Someone else already checked the quality, edited out any crap, encoded it properly. Morally there is no difference getting it over an antenna or Bittorrent.

    • That.
      It's damn near impossible these days to get a good DVR in any pay service. I have been using a cable card with a Plex server for the past four years and just recently canceled that due to outrageous cost.

      We're on Youtube TV right now and their DVR functionality sucks big green donkey dick. It is impossible to record just one episode of anything. If you tell the DVR to record, you automatically get every airing going forward until you stop it. Google's rationale is basically "so what, it's all unlim

  • Back in the day grey market DirectTV was the best television available in Canada. It really helped that there was a healthy piracy market war at that time.
  • We had DTV for a while over Comcrap based on costs; when AT&T pulled fiber into our neighborhood it was helpful to keep it since they pulled the data caps if you were also a DTV subscriber.

    That said, by the time our "commitment" was up with them, the Deathstar had pulled data caps anyway and with gig fiber feeding the house, a streaming package was half the cost and removed the rain fade problem (went with the Hulu Live/Disney/ESPN bundle). DTV's streaming package was actually *more* expensive than sta

  • That's what the vast majority of managers amount to anyway: little more than parasites that attend meetings, conference calls, make notes - and do precious little else that is not aimed at justifying the existence of their jobs.
  • I'm no math wiz but that's one manager per regular worker. Sounds like a wonderful place to work! Does anyone even have satellite TV any more? Out in the boonies, I'll occasionally see a dish on the roof, but that's few and far between.
  • It's no coincidence that they announce this after the end of the NFL regular season. With all the playoff games on regular TV going forward, this is the time when the Sunday Ticket people start canceling.

    Direct TV these days has to be one of the most depressing companies to work for. Their business model is Dead Man Walking and everyone knows it.

  • DirecTV was my original "Cord Cutting" before streaming was a thing. The problem for DirecTV was that I had proven myself a non-loyal customer simply by signing up with them.

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