CBS Will Cut Hundreds of Jobs as Profits Decline
NEW YORK — Looking for ways to save money and improve productivity, the CBS Broadcast Group, including its news, sports and entertainment divisions, will slash hundreds of jobs by the end of the year.
George Schweitzer, a CBS Broadcast Group vice president, announced today that the companywide economy move will eliminate several hundred positions. The cuts, which will take the form of layoffs and not filling vacant jobs, stem from a slowing economy and soft advertising demand for sports and entertainment programs.
After reaching a record $408.6 million in 1984, profits for the CBS Broadcast Group declined to $360.6 million last year.
Schweitzer said recommendations of the cutbacks will be made by June, with the changes being implemented throughout 1986.
“In a down economy, we’re looking for new ways to economize and to cut costs,†Schweitzer said. Management has not mandated a specific number of cuts. “There are no head counts,†he added.
Schweitzer noted that CBS will save about $450,000 this year by not replacing two vice presidents who recently left CBS’ owned-and-operated stations division. The savings come from the salaries and fringe benefits of the executives and their secretaries.
Among some of the contemplated cost-cutting measures are the possibility of selling the CBS Sports broadcast-operations trucks and leasing them back for weekend events. That arrangement would save expenses in personnel costs, maintenance and transportation, Schweitzer said.
Also being considered are more efficient ways for CBS News to cover conventions and elections, Schweitzer said.
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