PHILADELPHIA, Pennsylvania — Comcast said Thursday it expects to record more than $1 billion in fourth-quarter restructuring charges as it changes how the company is organized ahead of the proposed separation of NBCUniversal.
The size of the charge makes the overhaul material for one of the country’s largest television, streaming and communications companies. Reuters reported that Comcast disclosed the estimate during its October 22 earnings call. Co-Chief Executive Mike Cavanagh described a redesign of decision-making, resource allocation and operations intended to make the company more efficient and able to invest more decisively in growth.
Comcast’s filing with the Securities and Exchange Commission confirms that costs tied to the proposed NBCUniversal spinoff can include employee compensation, severance and retention bonuses, information-technology separation work and other one-time expenses. The filing does not provide a total job-cut figure or identify which television, newsroom, production or streaming operations may be affected.
Separate reporting Wednesday said Comcast was planning significant job reductions in its cable television, broadband and wireless businesses. Comcast has now confirmed the broader restructuring and its projected charge, but it has not publicly confirmed the number, timing or locations of any layoffs. Reuters reported the restructuring disclosure Thursday.
The changes come as Comcast prepares to separate NBCUniversal while confronting continued losses in its broadband and traditional video businesses. The company’s filing also showed that Peacock produced its second consecutive profitable quarter, with $1.8 billion in revenue and $261 million in adjusted earnings before interest, taxes, depreciation and amortization.
Radio News Now question: How much of the projected restructuring charge will become severance, and which broadcast, production, streaming and distribution operations will be affected?