Cal Athletics Informs About Two Dozen Staffers They Are Being Laid Off

Cal Athletics informed staff on Friday that all members of the department’s marketing, athletic communications and creative services units — possibly as many as 25 people — will be laid off, effective early June, as part of a strategy for a “complete redefinition of how we operate.”

Four sources within the athletic department confirmed the news to Cal Bears on SI, which obtained a copy of the email sent to staff members.

The stunning move comes as Cal moves forward with “a new, integrated external model called Strawberry Creek Studios, which will align all external efforts around two primary objectives: revenue generation and authentic storytelling,” according to the email.

It was not immediately clear how the athletic department intends to fulfill the functions of those being let go. But the email sent to staff said it plans to post 20+ new positions within a week and that all those who have received termination notices will have the opportunity to apply for assignments within Strawberry Creek Studios.

The email, sent from co-athletic directors Jenny Simon-O'Neill and Jay Larson, said the department plans to share more details in the coming weeks about the vision going forward.

The creation of Strawberry Creek Studios “is not a rebrand,” the email said, “it’s a complete redefinition of how we operate, moving from a promotional model to an innovative content and revenue engine.”

Simon-O’Neill and Larson, in their email, expressed sympathy for those impacted.

“The decision to eliminate these positions was incredibly difficult,” Simon-O’Neill and Larson wrote. “We understand the impact of this transition on the individual employees and their families.

“Each and every one of them has been a valued member of our team and we have nothing but appreciation for the services these colleagues have provided to Cal.”

The changes come amid a tumultuous time in college athletics, with conference realignments, transfer portal movement along with name, image and likeness (NIL) and direct revenue-sharing payments of about $20.5 million per year to athletes adding significant financial stress to athletic departments.

Cal Athletics faced a total financial shortfall of $24.3 million for the 2024-25 fiscal year, according to a report last month by Jon Wilner of the Bay Area News Group. That includes an annual $12 million debt payment on the 2010-12 Memorial Stadium earthquake retrofit and renovation.

The department is also collecting a smaller media rights payment since leaving the Pac-12 Conference for the Atlantic Coast Conference in 2024-25.

Revenue increased, partly due to record fundraising efforts, but team travel costs and coaching salaries also increased.

The University of Kentucky last year, anticipating the House settlement that allows schools to make direct payments to athletes, transitioned its entire athletic department to a nonprofit entity dubbed Champions Blue LLC.

“It was a first-of-its-kind move in major college athletics, one aimed at better positioning the program amid a sea change in college sports,” The Athletic reported.

Kentucky and Cal face vastly different financial landscapes, with the Wildcats operating in the black but intent on increasing its annual budget from $200 million to perhaps $250 million in an effort to continue thriving.

Cal’s big picture scenario is more about surviving.

The university hired Ron Rivera as football general manager a year ago, giving him autonomy to run the program and turn a .500 team into a winner that helps generate revenue and keeps the Bears relevant nationally for when the next wave of realignment inevitably arrives.

Rivera fired long-time football coach Justin Wilcox just prior to the end of the 2025 season and hired Tosh Lupoi, who has ramped up recruiting, expectations and fan buzz. The Bears will host their first spring game under Lupoi next Saturday at Memorial Stadium.

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