KNOXVILLE — New details have emerged in the changing shape the Knoxville office of Discovery Communications after it announced it would be laying off and transferring employees.
In a letter obtained by 10News that was sent to employees after the layoffs were announced, Executive Vice President of Digital and Media Operations Bob Baskerville talked about the 'new reality' of their business as it moves to become more digitally focused.
"As you've likely heard by now, there were organizational notifications to parts of the workforce yesterday and earlier today. For those impacted by the notifications, it's obviously difficult news; many colleagues that we know well and have worked closely with over the years will no longer be a part of this team in the coming months," the letter read. "While it's true that it's part of the realities of working in an integrated business off the heels of a massive acquisition, it's not lost on me one bit that these are people that are true professionals."
The letter talked briefly about the changing face of the company. For the Knoxville campus, that change has come rapidly after Scripps Networks Interactive was acquired by Discovery in a $14.6 billion deal that was finalized in March.
In particular, the letter provided clarity to the Knoxville campus' new roll as a 'blended technology' organization, which will focus on digital ventures for Discovery when its broadcast hub moves to Sterling, Va. in the coming months.
Discovery said on Aug. 7 it would be laying off and transferring employees at the Knoxville office -- saying there wouldn't be a net loss of jobs, though, as new positions opened up.
According to the letter, the Knoxville office will soon play a prominent role in enabling an 'innovative operational posture' for the company's digital businesses and to reach growing millennial audiences.
"In short, we're focusing our efforts on creating an organization that is rooted in service, support, and innovation, while delivering assets and tools that will ultimately result in a top-shelf customer experience, whether it's consuming our content, or utilizing the technology that enables them to effortlessly consume those products," Baskerville said in the letter.
However, the office will no longer be developing and producing original programming in house as those operations “sunset” in the coming months. Baskerville said the Knoxville office will still have “best in class” studio and post production facilities and he remained optimistic that there could be a larger need for those services in the future.
Experts say the organization shifts at Discovery are not unexpected.
Discovery released its second quarter earnings in early August, reporting a $100 million profit loss in part from, "an offset by higher restructuring and other charges associated with the integration of Scripps Networks."
"This is laying some people off and the costs associated with that, bringing systems together, moving people around, and so forth, so not surprising," Dr. Bill Fox, the director of the Boyd Center for Business and Economic Research, said. "The question for the company is not so what happens in a single quarter but what happens in the next several years."
Editor’s note: A previous version of this story incorrectly stated that the Knoxville Discovery office would phase out use of its studios and post-production facilities. This article has been updated to correct the error.