NBCUniversal Layoffs Hit TV Ad Sales Teams

NBCUniversal is letting go of ad sales executives at 30 Rock today, according to Insider citing two people with direct knowledge of the changes.

A third NBCU executive who was laid off Monday shared with Insider that he didn't take the cut personally and saw the layoffs as inevitable in the current economic climate. "I had a good conversation with my manager who was upfront and empathetic and willing to provide support," this person said.

NBCUniversal has about 2,000 sales executives, this person added.

The reduction in ad sales head count comes after the company executed a buyout program across divisions offering early retirement packages to older employees. A fourth person familiar with thinking at NBCUniversal told Insider that the company had not reached the targeted number of buyouts, so teams at big shows like "Today" were anticipating layoff news soon. NBC News has also been asked to look at budget cuts.

One of the people with direct knowledge told Insider the layoffs overall will be "big." The company has been looking to shave staff after a decline in linear TV viewing and an ad recession have hurt the traditional ad sales business.

 

NBCUniversal has already been conducting a series of small targeted layoffs across the company over the past few months, according to other executives in the entertainment division.

One person who was laid off in December told Insider that NBCUniversal let go of at least 50 people that month, some from the broadcast network and some from cable channels such as USA, Syfy, and Bravo.

Executives in production, digital, and marketing were axed, this person said, including marketing executives based in strategy, on-air promotions, and brand marketing teams. This source added that departing executives were offered generous severance packages. Groups affected were based in both Los Angeles and separately New York.

Speaking at a UBS event CEO Jeff Shell told investors on December 5, "Since we manage the TV business as a whole, you have to take cost out of linear as that business declines and try to maintain your margins." He added: "That will be a continuing ongoing process as we reallocate resources, but our overall spend is up because we're putting resources into the streaming side."

The company has said it is looking for $1 billion in cost cuts, according to Bloomberg. Comcast's NBCUniversal reports full year earnings on January 26.