The Los Angeles Lakers recently conducted layoffs across multiple departments as part of a significant organizational restructuring. These changes are occurring in the first offseason since Mark Walter's purchase of controlling shares of the team officially closed.
What happened
The Los Angeles Lakers laid off employees across various departments, including content, marketing, sponsorships, corporate partnerships, and media relations. The layoffs, described by team sources as "brutal" and "crazy," took place on a Wednesday and represent the second round of such actions in recent months. An earlier round affected employees of the South Bay Lakers, the team's G-League franchise, which is relocating to the Coachella Valley.
How many employees affected
The exact number of employees affected by the recent layoffs has not been disclosed. Sources indicate that a "number of employees" and "numerous employees" were impacted across multiple departments. The Lakers' layoffs are not believed to be as extensive as those recently seen with the Portland Trail Blazers, which affected "just over 70 people."
Why layoffs happened
These layoffs are part of a widespread reorganization following the sale of the team to Mark Walter, whose purchase officially closed last fall. The organization's general manager and president of basketball operations, Rob Pelinka, stated that the changes represent a "full rebuild and retool" aimed at elevating the organization. The restructuring also involves integrating with Walter's Dodgers operations, including new hires and facility upgrades. While the organization stated the layoffs were not necessarily due to cost-cutting, some sources expressed doubt, noting a trend of cost reductions after ownership changes.
Company background
The Los Angeles Lakers are a prominent professional basketball franchise in the National Basketball Association (NBA). The team recently underwent a significant ownership change, with Mark Walter acquiring controlling shares at a $10 billion valuation from the Buss family.
Industry impact
The Lakers' layoffs follow a broader trend within the NBA where organizational turnover and restructuring often occur under new ownership. Similar wide-ranging layoffs have been reported with the Portland Trail Blazers after Tom Dundon's purchase and with the Minnesota Timberwolves and Lynx after Marc Lore and Alex Rodriguez became controlling owners.
What's next
The Lakers' reorganization is an ongoing process expected to continue throughout the offseason, potentially culminating around the Summer League in Las Vegas. The team is also making new hires, particularly in basketball operations, and plans to add a biomechanics lab, new movement labs, and a recovery lab at their practice facility. These changes may also impact player relations and upcoming free agency decisions concerning players like LeBron James, Luka Doncic, and Austin Reaves.