Don't kid yourself, it's not that they aren't profitable, it's that they aren't profitable like they once were and are facing unique challenges to the business, which they'll figure out over time. ESPN’s profits are declining, but it is still profitable and its revenue and number of employees are still both growing - there is no hiring freeze. They laid off 100 or so folks - in April Coke announced it was going to let go 1,200 folks this year. I don't think that the last three cuts at ESPN amounted to that many people - it's was like 500, 300, and now 100 - for a look at layoffs look here -
www.dailyjobcuts.com
In '16 ESPN ranked as the highest-rated cable network among men and adults between ages 18 and 54, and second among total viewers in primetime and this was in an election year. It's still a huge engine for TWDC, but not as much as it once was and it's unlikely that they'll enjoy the gobs of cash that came from the dual revenue streams of the past, but they are certainly working with the leagues and the MSO's to figure out how to replace the loss of subscriber revenue.