Cablevision Systems to Cut 600 Jobs

Cablevision Systems Corp., the cable television operator that owns Madison Square Garden and the New York Knicks basketball team, said Thursday it will eliminate about 600 employees, or 4% of its work force.

The job cuts and related steps will reduce fourth-quarter earnings by about $55 million, the Bethpage, N.Y.-based company said.

The actions will affect corporate, administrative and infrastructure employees in “various business units,” though not cable-customer relations and field-service operations, Cablevision said.

Last month, the company reported a wider third-quarter loss after it wrote off some Knicks player contracts.

Cablevision is the largest cable TV operator in the New York area and has the seventh-biggest subscriber base in the U.S.

The costs include the expense to fire workers, for “facility realignment” and other unspecified actions, the company said.

“We really are not going to comment” beyond a statement the company distributed, spokesman Charles Schueler said.

The shares rose 69 cents to $46.74 on the New York Stock Exchange. They’ve dropped 35% this year, partly on investor concern about the company missing its schedule to introduce digital TV, which has higher monthly fees. Cablevision introduced digital-cable service Sept. 28; Schueler declined to say how many subscribers have signed up so far.

Last month, Cablevision said third-quarter sales at Madison Square Garden fell 11% because of fewer concerts and shows at the Manhattan arena and Radio City Music Hall. The company in October said the Sept. 11 terrorist attacks cut event attendance.

Third-quarter cash flow, or earnings before interest, taxes, depreciation and amortization, fell 22% to $181.6 million as the Wiz stores and Madison Square Garden lost money.

The company also said last month that it will raise cable-TV subscription prices an average of 5.5% next year to combat higher costs.