NBCU Announces Budget Cuts

NEW YORK, October 20: NBC
Universal is looking to trim $500 million from its 2009 budget, reports
indicate, with president and CEO Jeff Zucker telling employees in a memo: “We are living in a time of
unprecedented economic challenges.”

The 3-percent cuts will
likely come from promotional spending and discretionary expenses like travel,
according to the Wall Street Journal. Zucker told employees in a company-wide memo on Friday that the cuts
were necessary, as “it has become evident that the decline in consumer
confidence and spending will impact our operations.”

The latest cuts come two
years since the NBCU 2.0 initiative that called for a $750-million cut in
spending and the layoff of about 700 people.

NBCU’s third-quarter
revenues this year were up 35 percent to $5.1 billion, with profit up 10
percent to $645 million, driven by the cable channels, theatrical releases and
the Olympics. The company warned at the time, however, about profits and
advertising at the local stations and at the flagship NBC broadcast network.

—By Mansha Daswani