Dish Network cuts jobs to cushion the economic blow from the Coronavirus pandemic
- Dish Network Corp. lays off an unspecified number of employees due to COVID-19.
- Dish may fail to become the 4th-largest U.S wireless network due to lack of financing.
- The U.S television provider is currently trading around 40% down year to date.
The economic blow from the Coronavirus pandemic to the global businesses is unprecedented in history. Numberless companies have already resorted to cost-cutting strategies to survive the financially challenging time with many of them currently in the process of evaluating similar options. In recent news, Dish Network Corp. (NASDAQ:DISH) announced on Monday that it has reduced its staff to maintain its financial stature amidst COVID-19.
The U.S-based satellite TV provider also said that it is meticulously evaluating different business segments to devise a more thorough strategy against the ongoing health emergency. The company, however, didn’t divulge the exact number of workers that it laid off.
CEO Eric Carlson’s Comments In An Internal Memo
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Dish’s Chief Executive Officer Erik Carlson was reported quoting in an internal memo to the company’s employees:
“The pandemic has forced us to take a closer look at every aspect of our business, at our work volumes, our areas of focus and investments, and the performance of our team members. I want you to hear directly from me that we’ve made a series of difficult decisions to re-evaluate parts of our business, particularly within In-Home Services.”
At the end of the last year, Dish Network had a total of 16,000 employees.
Dish has recently been committed to earning a reputation as a wireless phone carrier. As the trend continues to shift to online streaming services such as Disney Plus that was rolled out in the U.S in November and recently in Europe and India, and the world-renowned Netflix that is available in 190 countries, Dish is faced with rising challenges in retaining its pay-TV customer base.
Dish May Fail To Become The 4th-Largest U.S Wireless Network
Dish’s plans of emerging as the fourth-largest wireless network in the United States, however, have recently been threatened by the ongoing health crisis. A source who was likely to be a part of the lending group recently told New York Post that the company may fail to secure the required financing due to the rising market uncertainty.
At the time of writing, Dish Network is exchanging hands at £17.65 per share in the stock market that marks an around 40% decline in 2020 so far. The stock had previously dropped to as low as £14.50 per share on March 23rd. Owing to the downward rally that started in late February, Dish has now lost all gains that it posted in the stock market last year.
Dish Network Corp. is currently valued at £9.23 billion and has a price to earnings ratio of 8.50.