Layoffs

Layoffs due to our current economic crisis are sweeping the television industry. Two major corporations, NBC and Disney-ABC, are planning to lay off hundreds of workers in the near future according to articles by TVNewser and Mediaweek.

Layoffs at NBC are part of an effort to cut $500 Million from the budget. NBC president Jeff Zucker stated in a letter to company employees:

“...All of our business leaders are being asked to cut their spending projections for 2009. We are asking for a reduction of approximately $500 million across the company, which represents about 3% of our overall budget. While each business leader has flexibility in how to meet this goal, we have asked them to focus on three areas: reductions in promotion expenses; in discretionary spending, such as travel and entertainment and outside consultants; and in staffing costs."

I can’t think of too many other ways to reduce staffing costs than to lay people off, and $500 Million can pay a vast amount of people. Employees who are losing their jobs are not only those new to the company. Reporters and correspondents who have been with the company for years are being laid off.

Disney-ABC president Anne Sweeny put it this way told it a bit more straightforward in her memo to employees:

"After months of making hard decisions across our businesses to help us adjust to a weakening economy, we're now faced with the harsh reality of having to eliminate jobs in some areas. This was not an easy decision, nor one made lightly,"

Over 200 jobs at Disney and ABC will be cut and all open positions will be eliminated.

Layoffs come from both small and large markets. Basically no one is safe except for the people holding executive positions. It’s a scary situation for someone like me looking into a career in the television industry, since these are not just small companies, but huge corporations that are struggling.