NBCUniversal has started laying off employees as the company moves forward with plans to focus on its streaming service operations. However, the impact of the coronavirus pandemic has also factored into the cutbacks.
Last week, NBCUniversal CEO Jeff Shell confirmed reports of an overhaul during the company’s second-quarter earnings call. While Shell did not provide a timeline or details on the cutbacks, Deadline reports that a person close to NBCUniversal has confirmed the layoffs were already underway.
During the earnings call, Shell noted how the company plans to move forward with its streaming initiative under Mark Lazarus. “It is said that crises tend to accelerate and exacerbate trends that are already happening. That is certainly true in the television business, where viewership is rapidly shifting from linear to nonlinear. A few months ago, we combined our television and streaming businesses under Mark Lazarus, which will allow us to more rapidly shift our resources and investment from linear to streaming. Mark is finalizing a new structure that will demonstrate the unique way we intend to manage this business going forward,” Shell explained. Lazarus had been named Chairman, NBCUniversal Television and Streaming in May 2020.
However, the coronavirus pandemic has also led to the closure of Universal’s theme parks, the delay of film releases, and a drop in advertisements. According to a report by The Wall Street Journal, these combined events resulted in a 25% revenue decline for NBCUniversal in the first quarter. While the outlet reported that the cutbacks “would likely be held to less than 10% of the company’s 35,000 employees,” Deadline sources claimed these numbers were “a bit aggressive.” Although insiders informed Deadline that the park divisions and Telemundo will be most affected directly, other areas within the company will be impacted down the line.
NBCUniversal entered the streaming game in April when Peacock became available to Xfinity cable and broadband customers before launching across the U.S. in July. With a library of notable television shows and films, some might view the NBCUniversal layoffs as an unfortunate but inevitable cost of moving forward in a digital age.
However, it can be hard to ignore the coronavirus’ impact on NBCUniversal’s decisions. Even as businesses in the U.S. begin to re-open, if they haven’t already, it appears the full economic devastation caused by the pandemic is still unfolding.
Source: Deadline, The Wall Street Journal
