NBC Announces 250 Job Cuts

NBC will cut about 250 jobs, or about 4 percent of its work force, in an effort to rein in soaring costs, the network announced Thursday.

The layoffs, announced in a memo to employees from NBC president Robert Wright, will come across the network. But programming departments such as news and entertainment will be less affected than support operations that are not specifically tied to shows.

"The memo details the need for some staff reductions across the company, but also makes it clear that we're working to limit the number necessary," said NBC spokeswoman Kassie Canter.

Like all networks, NBC is struggling with skyrocketing programming costs and a decrease in viewers as cable takes away audience share from broadcasters.

NBC is expected to remain the most profitable network this year, though analysts expect its profits to drop anywhere between 20 percent and 60 percent from $500 million last year.

Earlier this year, the network signed a three-year deal to pay $13 million an episode for the hit drama E.R. and is paying millions to Mad About You stars Helen Hunt and Paul Reiser, as well as Tom Brokaw, Katie Couric, Geraldo Rivera, Jane Pauley and Stone Phillips.

The layoffs follow cuts at rival networks. CBS last month announced staff reductions to help return the network to profitability, while ABC has also cut jobs and is placing a temporary freeze on raises and promotions. Both networks signed deals with the National Football League that will cost them more than $4 billion each over the next eight years.

Both NBC and CBS have been the subject of recent merger rumors. They are the only networks not aligned with a major production studio, which can help reduce programming costs.
NBC has reportedly talked with USA Networks, Sony, Viacom and Liberty Media in the past year. NBC programming chief Warren Littlefield said in July that a merger seemed inevitable.

NBC, a unit of General Electric Co., has 6,500 employees and also owns the CNBC and MSNBC cable networks.