NBC Universal to Cut 700 Jobs

'NBCU 2.0' Restructure Aims at $750 Million Cost-Cutting Target

Confirming months of swirling layoffs rumors, NBC Universal announced plans today to cut 700 jobs, roughly 5 percent of its labor force.

Aiming to trim $750 million in operating costs across its broadcast network, cable channels and other units, the company will look first to early retirement offers and buyouts.


With this restructuring, known as 'NBCU 2.0,' aimed as well at moving organization further into the digital media era, NBC's news division is among areas expected to take direct hits. The news unit is responsible for producing the top-rated morning program Today and holds the number one evening newscasts, among other news properties.

Steve Capus, president of NBC News did not confirm how many cuts are expected across his area. Some cuts will occur this year, he said, and most in 2007.

NBC News president Steve Capus would not say how many positions would be affected in his area, but did tell Television Week yesterday that a few job cuts will occur before the year's end and most will happen in 2007.

Faced with the tough responsibility of cutting jobs held by people with whom he may have worked for several years, Capus said these changes will allow the division to "re-invest in growth areas."

“This is not slash and burn and leave it all behind," Capus explained. "We are making an investment in the future of this organization. I am going to make darn certain that it has a long run in the future.”

News Ops on the Move

MSNBC, in one of NBCU 2.0's most significant initiatives, will move from its 10-year home in New Jersey to NBC News' headquarters at 30 Rockefeller Plaza in Manhattan. Capus said some of the cable net's departments, however, may join CNBC in Englewood, New Jersey.

Among other forthcoming shifts, the NBC Nightly News control room will move across the street from news headquarters, sharing space with the morning giant Today.

To foster collaboration among more autonomous NBCU operations, such as CNBC, Telemundo and its local stations, Capus said plans to reduce redundancies are in the works. “Why should each of them have a booking unit?” he asked, for instance.

While NBC television has suffered in the ratings and seen NBCU profits drop 10 percent from one year ago for the second quarter, Capus said these are not the restructuring's prime catalysts.  The NBC News head told Television Week that the digital age has hit media companies with a “tsunami" of challenges. “Either you drown," he said, "or you ride the wave.”

NBC Universal, a division of General Electric, is home to the NBC television broadcast network, cable channels such as USA Network, Sci Fi and Bravo. Strong showings from Emmy-award winning series The Office and newcomer Heroes are helping the company turn its broadcast ratings dip around.