CBS to Eliminate 600 Jobs in Broadcasting Division

CBS will cut up to 600 jobs in its broadcasting division as early as this week as part of its overall cost-cutting program, according to a report published today.

The cuts come in the face of slow growth of advertising revenues and are the most extensive at CBS in 15 years, the Wall Street Journal reported.

Some budget trimming had been expected at CBS, but the cuts affect about twice as many jobs as had been expected, the newspaper said.

The reductions, which amount to 7% of the division’s more than 8,000 employees, will be accomplished mainly through layoffs, unidentified company executives were quoted as saying.

George Schweitzer, a broadcast group spokesman, said today: “I will not officially comment on any numbers of personnel reductions, but there will be personnel reductions.”

CBS has more than 24,000 employees overall.

The cutbacks will affect mainly staff positions in such areas as research, public relations and finance, the newspaper said, but some vice presidents and managers will be laid off too.

13% Increase in Expenses

CBS broadcast group executives have said they hoped to limit cost increases this year to 4%, after keeping the increases at 6% in 1985 through several cost-reduction measures.

Group expenses rose 13% in the first quarter alone, however, triggering tougher measures for the rest of the year, the Journal said. The increase in the first three months of the year resulted primarily from increased program development costs.

CBS eliminated about 125 jobs in its network news division, last year, including 70 through layoffs, and cut about 40 employees in its records division. In addition, about 600 employees took early retirement last year.

The broadcast group accounted for 75% of CBS’ 1985 operating profit of $478.6 million.