NBCUniversal Starts New Round of Layoffs

NBCUniversal, a subsidiary of Comcast, has initiated a new round of layoffs as part of its preparations for the separation of its cable assets into a new publicly traded company, tentatively named SpinCo.

The restructuring is part of a broader strategy to streamline operations and adapt to the declining linear TV market while focusing on streaming and core NBCUniversal brands. Below is a detailed overview based on available information, including financial context, the scope of the layoffs, the SpinCo separation, and critical analysis of the implications.

NBCUniversal is laying off a few dozen employees across its television and streaming divisions, including NBC, cable networks (e.g., USA Network, CNBC, MSNBC), Peacock, and the studio side. The exact number is not specified but is described as “surgical” rather than the “sweeping” cuts seen in prior rounds, suggesting a targeted approach.

Affected areas include marketing, communications, and some junior programming roles. Notable departures include Kathleen French, the current programming head, and other executives who worked across multiple cable networks and Peacock.

SpinCo is a new publicly traded company that will house most of NBCUniversal’s cable assets, including USA Network, CNBC, MSNBC, Oxygen, E!, SYFY, Golf Channel, and digital properties like Fandango, Rotten Tomatoes, GolfNow, and SportsEngine. It is projected to generate $7 billion in annual revenue and reach 70 million U.S. households.

The separation, announced in November 2024, is a tax-free spinoff, with Comcast shareholders receiving stock in SpinCo. The move aims to create a “free-standing, strong collection of businesses with significant cash flow generation capability” amid the decline of linear TV.

SpinCo will be led by Mark Lazarus, former NBCUniversal Media Group chairman, as CEO, with Anand Kini as CFO and COO, and Val Boreland as president of entertainment. Other executives include Matt Hong, Jeff Behnke, and Roy Cho, overseeing sports and distribution.

Strategic Rationale:Comcast is exiting the linear cable business due to cord-cutting, declining ad revenue, and audience migration to streaming and social media platforms. SpinCo allows these cable assets to operate independently, potentially pursuing mergers, acquisitions, or new streaming strategies to remain competitive.