Universal Trims 115 Jobs in Cost-Cutting Move

As part of an ongoing “re-engineering” effort to shave as much as $100 million from annual overhead costs, Universal Studios issued pink slips to 115 full-time production services workers Wednesday.

The layoffs come on the heels of other cost-cutting moves made in the last six weeks at the entertainment conglomerate, which is owned by global beverage concern Seagram Co.

More than 40 jobs were cut from Universal’s information technical support division--15 permanent employees and 28 independent contractors. In late May, about 30 people lost their jobs at MCA Records and Geffen Records as the music division slashed more than 10% of its work force.

Since Seagram acquired 80% of Universal in April 1995 for $5.7 billion and the company assembled a new management team under Seagram chief Edgar Bronfman Jr., more than 200 people have been laid off at the studio.

After coming aboard as head of Universal’s Television Group last year, Greg Meidel downsized the operation by 50 positions.

A Universal spokeswoman said no further cuts are expected. Universal Pictures employs about 15,000 people worldwide, roughly half of them in Southern California.

Universal is not alone in its reevaluation of costs and efficiencies. Several other entertainment concerns, among them Sony Pictures and Warner Bros., are looking for ways to improve their bottom lines. The companies all say the bulk of their expected savings come from reductions in procurement costs rather than personnel.

In its move to make the studio operations group run more efficiently for on-lot and independent movie and television producers, Universal reorganized the division into two areas: production services, which includes the departments supporting production on the lot, and facilities services, encompassing the maintenance and management of the facility.

The cutbacks represent a staff reduction of about 10% in the studio operations group. Departments affected by the firings include clerical, administrative and accounting; facility engineering; sign, paint and staff shops; negative cutting; and sound engineers.

Universal said that in addition to the elimination of 115 regular production services positions, 37 employees have been either reassigned in production services or transferred to facility services.