NBCUniversal’s Cost-Cutting Push to Include Significant Job Cuts

(Bloomberg) -- NBCUniversal's aggressive plan to streamline the media business during the coronavirus crisis will include job cuts, according to a person familiar with the situation.

Jeff Shell, who runs the Comcast Corp. division, said this week that he was seeking ways to cut costs, saying NBCUniversal would ultimately emerge as a “a different company.” Headcount could be significantly reduced in the process, according to the person with knowledge of the matter, who asked not to be identified because the deliberations are private.

The Wall Street Journal previously reported on the plan to eliminate jobs, saying discussions on how to handle the cutbacks began this week.

NBCUniversal, which employed 66,000 people as of the end of last year, has been hard hit by the pandemic. The company's theme parks have been shuttered, its movie releases have been delayed or sent straight to video, and the sports blackout has hurt viewership and advertising.

On a conference call Thursday, Shell said some business -- such as theme parks -- would bounce back. But in other cases, the company is facing “structural declines.”

“We're spending a lot of time on our cost base,” he said. “Certainly over the next weeks and months, we'll make pretty significant adjustments there across our business.”

NBCUniversal isn't the only media giant making cuts. ViacomCBS Inc. has been eliminating hundreds of jobs as it combines two businesses that merged in December. Walt Disney Co. and others have been furloughing staff and cutting executive pay.

Comcast shares slid on Thursday after giving a dim outlook for its theme parks and the film and TV divisions. During the earnings call, Chief Executive Officer Brian Roberts said those businesses will be “under substantial duress because we must shelter in place.”

Last quarter, Comcast's film revenue dropped 23%, and theme parks suffered a 32% decline. Parks and movie theaters have been closed in the U.S. since mid-March.