The Portland Trail Blazers recently conducted significant layoffs, affecting approximately 70 employees, primarily within the business operations. These reductions follow a transition to new ownership and are part of an effort to streamline the organization.
What happened
On Tuesday, the Portland Trail Blazers laid off 70 employees, marking the most substantial staff reduction since June 2020. The cuts primarily impacted the business side of the organization and occurred less than two months after Tom Dundon's ownership group acquired the team. Blazers President of Business Operations Dewayne Hankins confirmed the restructuring, stating it was part of plans to position the organization for the future.
How many employees affected
Approximately 70 employees were affected by the layoffs. Before these reductions, the Trail Blazers had roughly 215 employees on the business side and about 390 employees in total. The majority of the cuts were in business operations. This represents about 18% of the total workforce.
Why layoffs happened
The layoffs are attributed to the new ownership's commitment to running a more "efficient" organization. A high-ranking team official indicated that the Blazers were among the largest organizations in the NBA, a size deemed "unsustainable" given the league's lowest sponsorship revenue and near-bottom ranking in ticket revenue. The move reinforces a pattern of cost-cutting measures under the new ownership.
Company background
The Portland Trail Blazers are a professional basketball team in the NBA. The team recently transitioned to new ownership in March, with Tom Dundon's group completing a $4.25 billion purchase from the estate of late owner Paul Allen. Dundon also owns the NHL's Carolina Hurricanes.
Industry impact
Staff reductions following a change in ownership are not uncommon in professional sports, as seen with the Minnesota Timberwolves' layoffs last year. However, the scale of the Blazers' layoffs has drawn scrutiny, particularly given previous perceived cost-cutting measures by the new owner. Critics suggest these actions could impact the team's goodwill in Portland and its ability to attract top talent.
What's next
The layoffs occur at a pivotal time for the Blazers, who are currently negotiating with the city and Multnomah County for $600 million in public funding for an overhaul of the Moda Center. The new ownership's approach to efficiency and cost management is expected to continue to be a focus.