City hopes layoff rumors are untrue

BURBANK — City and county officials expressed concern about an unstable job market after online rumors circulated Thursday that NBC Universal will eliminate 500 jobs nationwide.

In October, NBC Universal President Jeff Zucker called for a 3% cut of the company’s annual $16.7-billion budget. He asked for specific reductions in travel and entertainment expenses, promotions, staffing fees and other areas.

An NBC spokesperson declined to comment on the downsizing rumor Thursday, but some officials took the news to heart.

“NBC Universal had announced that they would be downsizing,” said Jack Kyser, chief economist for the Los Angeles County Economic Development Corp. “So this is the actual implementation. For a lot of these people, they will be laid off during a very, very tough job market.”

Burbank City Manager Mary J. Alvord said the proposed cuts would be a blow to the city.

“It’s not about headlines and the number 500. It comes down to the person handed the pink slip. None of us are prepared to face that kind of news,” Alvord said. “I take all of these on a personal basis. It’s devastating news.”

NBC Universal has a long history in Burbank, filming programs such as “The Tonight Show.” In October, officials with the company announced plans to relocate to Universal Studios.

The rumor of layoffs comes shortly after another media giant, Viacom Inc., announced plans to eliminate 850 jobs worldwide after third-quarter profits declined. Viacom Inc. includes BET Networks, Paramount Pictures and MTV Networks.

“We’re a city of well over 100,000 jobs,” Alvord said. “You have to take it down to the individual stories — this is someone’s family member that suddenly finds themselves out of work.”

As of October, unemployment rates in Los Angeles County soared to 8.2%. Nationwide, unemployment hit 6.5% in October, or about 10.1 million people.

“The unemployment numbers will continue to look pretty dismal.” Kyser said. “You’ll probably see layoffs continue well into 2009. When you’re in a recession, a lot of companies will use the opportunity to streamline their operations.”

Kaiser advised wary employees who are concerned about their job security to watch the movement in their industry and save money.

“We’ve had a lot of bad news over the last couple of weeks about layoffs. It’s not the most fortuitous time,” Kyser said. “It’s never a good time. During the holidays, it takes on a little more poignancy.”

On an optimistic note, Alvord said she is witnessing greater community support in Burbank with the country’s economic downturn.

In addition to unemployment benefits, she said, organizations such as the Burbank WorkForce Connection are available for those needing job placement assistance.

“People are trying to stay optimistic,” Alvord said. “It’s frightening times. I don’t think there is an easy answer.

“We all need to pitch in to get through this. There will be victims in this.”