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May 9, 2003
U.S
media layoffs — since the summer of 2000 — have now reached 70,000.
Apparently the bleeding hasn’t stopped. Media companies continue to cut
jobs in a weak American economy. U.S media layoffs—since the summer of
2000— have now reached 70,000, reports I Want Media, a Web site that
reports on such media statistics.
The most recent layoffs include 70 staff members at Showtime, the cable
network, representing about ten percent of Showtime’s workforce. The cable
channel didn’t offer details of the cuts, but analysts say it was the
result of dramatic cable industry consolidation and demands by
Showtime’s parent company, Viacom, to increase cash flow. Most of the
layoffs came in the areas of affiliate relations, marketing, creative
services and programming.
There were also reports that HBO recently laid off about 20 affiliate
sales employees. Again, media consolidation was blamed. “We have
restructured our organization to reflect the ongoing changes in the
industry,” said Eric Kessler, HBO's president of sales and marketing.
Last month, Boston’s WGBH-TV reduced its work force by about 75 people.
Approximately 25 employees were laid off, while the rest departed under
buyouts, attrition and the conclusion of short-term contracts.
WGBH told the Boston Globe that the cuts were the result of the economy,
which has caused a reduction in funding from corporations, foundations,
state and federal government, PBS, and its own endowment. The uncertainty
caused by the war in Iraq also had an impact on funders who are reluctant
to make commitments, the station said.
“What we're experiencing is not any one thing but a whole lot of small
things that all add up to a very harsh economic climate,” said Henry
Becton Jr., WGBH president, who asked every department to cut its budget.
“We are tightening our belt across the board in order to weather this
economic downturn.”
Even Harris Corporation, which had hoped to profit from the sluggish DTV
transition, has not been immune. Last week the company that manufactures
television and radio transmitters--as well as other consumer-related
products like DSL equipment--announced “cost reduction actions aimed at
reducing corporate overhead expenses and increasing operating income in
its commercial businesses.”
These actions include approximately 230 total positions being eliminated
from its corporate headquarters in Melbourne, Fla., and among the
Broadcast Communications Division in Quincy, Ill., Mason, Ohio, and
Sunnyvale, Calif.
Howard L. Lance, president and chief executive officer of Harris, said he
was “pleased with the company's solid financial performance,” yet, “our
commercial division results have been lagging. [The] actions being
implemented in the Broadcast Communications Division will reduce costs and
improve profitability at its current level of business and position it for
growth as the transition to digital technology regains momentum.”
For more information visit The United States Department of The Treasury at
www.treas.gov.
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