NBC Universal to Cut $500 Million in '09

NBC Universal will dump three percent of its budget for 2009 - which equates to $500 million - according to a memo that Jeff Zucker sent out Friday.

The memo reached those in the company, who were told that a portion of the $500 million in cuts would likely take the form of staff cuts, though Zucker didn't say that immediate layoffs should be expected.

In addition to the staff cuts, the NBC Universal CEO said that the savings would also be a reduction in promotional expenses and some of the discretionary (wasteful) spending for travel, entertainment and outside consultants.

"This kind of message is never easy, but it is the right step to make and the right time to make it," Zucker said.

Zucker's memo comes as General Electric's stock (as most seem to be these days) is extremely low. But NBC Universal continues to be one of the best earning branches of GE, and because of this, resources need to be better allocated.

NBC Universal's profit rose 10 percent to $645 million in the third quarter this year, which is the eighth consecutive quarter that it has seen gains, which is good considering the economy.