NBC Universal Sets Major Budget Cuts

Business has been good for NBC Universal lately, showing profit and growth for two years straight. But that isn't stopping the media conglomerate from slicing $500 million off their operating budget for next year.

Variety reports that CEO Jeff Zucker announced the budget cuts to staff last week, saying, "The leadership team . . . agrees that we must take steps now to prepare for these new economic realities. . . . [A]ll of our business leaders are being asked to cut their spending projections for 2009."

Some factors include a major collapse in local ad revenue, and the financial hardship of NBC Universal's parent company, General Electric.

The memo precedes a major board meeting where the division heads of NBC Universal will choose where they will trim the 3 percent of operating cost from the 2009 budget.

What effect, if any, this will have on the current stalled negotiations with the Screen Actors Guild is unknown.