Drop in Earnings Forces CBS to Reduce Staff by 400

CBS Inc. on Friday said it will reduce its staff by 400 positions this year through attrition and layoffs because of the broadcast giant’s weak financial performance in a depressed business environment.

The communications and entertainment company reported a sharp drop in earnings for the first quarter, citing lower television advertising sales reflecting the recession, the impact of the Persian Gulf War and growing media competition.

“As a result of these factors, the CBS television network reported an operating loss in the first quarter of 1991 and is currently expected to incur a loss for the full year,” said CBS Chairman Laurence Tisch. “During 1991, the company anticipates that overall staffing will decline by approximately 400 positions as the result of retirements, attrition and layoffs throughout the corporation.”

The company said it has set aside $20 million to cover the anticipated restructuring cost this year.

CBS reported first-quarter earnings of $10.4 million, or 54 cents a share, from continuing operations, down from $85.3 million, or $3.31 a share, for comparable operations in the year-ago period.

The results included $65.8 million from interest on investments. Without these profits, the company would have run a steep loss from continuous operations of $54.6 million.