ABC News is cutting its budget by up to $20
million in an effort to avoid layoffs in a softening advertising
market, though up to 15 correspondents may lose their jobs, sources
from the company said Friday.
The reductions were less severe than those announced in the past
week by CNN and NBC, which are both cutting hundreds of jobs in
their TV and online divisions to overcome a downturn in ad revenue
as the economy slows.
Spokesmen for ABC declined to comment, but executives familiar
with the matter said that up to 15 news correspondents will not
have their contracts renewed over the course of the next year.
In other cost-cutting measures, the operations of "World News
Tonight" and "Weekend" will be combined to save money on camera
shoots and other expenses.
Shoots requiring three cameras will also be reduced in order to
save on labor costs, said executives at the network, which is a
division of Walt Disney Co.
ABC News has had a hiring freeze in place since last fall, and
any jobs that are vacated by attrition will not be filled, the
executives said.
The network expects to save about $15 million to $20 million
with the measures, which would represent about 3 percent to 4
percent of its overall news budget.
Julie Hoover, a spokeswoman for ABC, would not comment on the
specific budget changes at ABC News, but said "ABC has
traditionally been very cost conscious, and that vigilance has
increased."
In the past week, General Electric Co.'s NBC unit announced that
it would slash up to 600 jobs, or 10 percent of its work force.
Separately, NBC's online division said it would cut 150 jobs in its
second round of cost-cutting since last summer.
CNN, a division of the newly merged AOL Time Warner Inc., also
said this week that it would eliminate some 400 positions as part
of an overall strategic revamp of the company.