700 Layoffs at NBC Universal

NEW YORK, October 19: About 5 percent of NBC Universal’s
workforce—some 700 people—will be let go by the end of 2008 as part
of a company-wide restructure announced today called NBCU 2.0.

NBC Universal said today that the move is intended to
maximize “the potential of the entire NBC Universal portfolio,” including
broadcast, cable, film and theme parks, “by creating operating efficiencies and
reallocating resources to invest in new growth areas.” The restructure is
expected to reduce the company’s expenses by $750 million. Some of those
savings will be reinvested in the company’s digital efforts as well as for its
international expansion plans.

In making the announcement, Bob Wright, the vice chairman of
GE and chairman and CEO of NBC Universal, noted, "Success in this business
means quickly adjusting to and anticipating change. This initiative is designed
to help us exploit technology and focus our resources, as we continue our
transformation into a digital media company for the 21st century.”

Jeff Zucker, the CEO of the NBC Universal Television Group,
added, "NBC Universal 2.0 will prepare us for future growth from a
position of strength. With new momentum in prime time at NBC, continued
leadership from NBC News, real growth at Telemundo, and solid performances in
virtually every other division of our Television Group, there is no better time
to re-engineer the company for the revolutionary changes to come. We have to
recognize that the changes of the next five years will dwarf the changes of the
last fifty."

At NBCU Television Group, newsgathering operations will be
modernized, and MSNBC will move its operations to the company's production
facilities at 30 Rockefeller Plaza, New York, and Englewood Cliffs, New Jersey.
NBC Universal is also creating consolidated news facilities in Burbank to serve
the news and information operations for NBC and Telemundo networks, KNBC, KVEA,
KWHY. Reviews are also under way at NBC News bureaus and facilities around the
world.

On the entertainment side, NBC Universal is looking to
reduce its dependence on traditional content distribution methods and
advertising models. This includes bringing content to consumers sooner on a
variety of platforms, creating new windows or opportunities in the traditional
syndication market, and developing alternative advertising models. The Hispanic
market will continue to be a key focus for the company.

At Universal Studios, positions will be consolidated in the
domestic theatrical, home entertainment and television marketing and
distribution divisions. Further, locations, support functions and marketing
activities will be consolidated at Universal Pictures International, Universal
Pictures International Entertainment and NBC Universal International Television
Distribution.