Berkeley, CA – Cal Athletics has announced the layoff of approximately 25 employees across its marketing, athletic communications, and creative services units, effective early June 2026. This significant restructuring marks a "complete redefinition of how we operate," as the department shifts towards a new "Strawberry Creek Studios" model focused on revenue generation and authentic storytelling. The move is a direct response to mounting financial pressures, including a projected $24.3 million deficit for the upcoming fiscal year.
The newly formed "Strawberry Creek Studios" aims to transform Cal Athletics from a traditional promotional entity into an "innovative content and revenue engine." This strategic pivot aligns with public sentiment regarding modern engagement, as expressed by Sonia Baschez. She stated in a recent tweet, > "hate to see people lose their jobs but Cal Athletics barely took advantage of the #calgorithm last football season, so we need people that know what to do with virality and creating content that resonates with where fans are now."
Co-athletic directors Jenny Simon-O'Neill and Jay Larson acknowledged the difficulty of the decision, emphasizing the necessity of these changes to navigate a challenging landscape. The department faces substantial financial shortfalls, exacerbated by recent conference realignments, the evolving transfer portal, and significant Name, Image, and Likeness (NIL) payments to athletes. These industry-wide shifts demand new approaches to financial sustainability.
Despite the layoffs, Cal Athletics plans to post over 20 new positions within the "Strawberry Creek Studios" framework in the coming week, offering affected employees the opportunity to apply for these roles. This initiative is part of a broader effort to revitalize the athletic program, which also includes recent leadership changes in football with the hiring of General Manager Ron Rivera and Head Coach Tosh Lupoi. The department aims to share more details on the vision for Strawberry Creek Studios soon.
