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NBC Universal to Slash 3 Percent of Workforce
4-Dec-2008
Written by: Daniel A. Russ
A series of pink slips went out today, informing as much as 3 percent of the company that they were no longer employed.
According to a series of insider sources, as reported through Variety, NBC Universal will be downsizing its workforce by 500 staffers, and the cuts will be affecting workers worldwide.
The downsizing will be handled through buyouts, layoffs, early retirements and attrition, depending on the payscale and position of the employee. Although NBC Universal sent out approximately 30 pink slips informing various members of the NBC Universal sales team of their new status of employment, the majority of the 500 new dismissals are expected to be informed today.
According to those same sources, the cuts would be made across the board and in all divisions – NBC Universal is letting go of about 3 percent of its total workforce. Some sources claimed as many as 80 jobs at CNBC – the business news channel of the company – would be lost, although other sources claimed as few as 40.
The layoffs shouldn’t come as a surprise either to consumers or to NBC Universal employees; in October, CEO of NBC Universal Jeff Zucker announced by way of internal memo that the company would attempt to reduce its operating budget by $500 million – or 3 percent.
Although the 3 percent number may seem suspicious, it is coincidental; Zucker, in the October memo, said that job eliminations would be part of the budget slashes, although he also claimed discretionary spending – like travel, entertainment and promotional expenses – would also be cut.
The original memo in October came just days after NBC Universal’s earning report showed a 10 percent increase in operating profits for the quarter. Zucker, however, decided that given the economic recession that NBC Universal needed to take steps to ensure that damage incurred by them would be minimal.
“We are living in a time of unprecedented economic challenges, and it is increasingly clear that the worldwide economic slowdown will continue into next year,” he wrote. “The leadership team of the company agrees that we must take steps now to prepare for these new economic realities. As a result, all of our business leaders are being asked to cut their spending projections for 2009.”
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