Signage for the NBCUniversal Inc. peacock streaming service will appear on a laptop on Friday, April 17, 2020, in an arranged photo taken at Brooklyn Borough in New York, United States.
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NBCUniversal has started a round of layoffs as the company grapples with the effects of coronavirus closings and changes its media strategy. Reductions are expected to affect less than 10% of the Comcast subsidiary's 35,000 full-time employees.
The layoffs are part of a plan to make the entertainment segment of the business more focused on streaming operations. The entire portfolio of the company, which includes sports and cable channels, radio networks, a film studio and theme parks, has been reduced.
Layoffs in its parks are linked to the coronavirus pandemic, sources near the CNBC company said. Reductions in other entertainment areas are related to the restructuring of the business.
"Crises are said to tend to accelerate and exacerbate emerging trends," said NBCUniversal CEO Jeff Shell during a profit call last week. "This is certainly true of the television business, where viewership is rapidly shifting from linear to non-linear. A few months ago, we combined our television and streaming business under Mark Lazarus, which allows us to shift our resources and investments from linear to Mark faster is building a new structure that will demonstrate the unique way we want to manage this business in the future. "
The layoffs have been expected for several months, and will take place immediately after NBCUniversal announces that second quarter sales declined 25% to $ 6.1 billion in the second quarter due to theme park closures, film release delays and advertising spending.
– CNBC's Julia Boorstin contributed to this report.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.