logo
Sun, Jan 28, 2001 EST
fundsnav.gif (2552 bytes)
registration
account management
business home
home

ABC News Cutting Budget by up to $20 Million
By Seth Sutel   Associated Press
NEW YORK — 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.

More Marketwire More MarketWire News Top of Page


© 2000, News Digital Media, Inc. d/b/a Fox News Online
All rights reserved. Fox News is a registered trademark of 20th Century Fox Film Corp.
Data from Thomson Financial Interactive is subject to the following Privacy Statement
© 2000 Associated Press. All rights reserved.
This material may not be published, broadcast, rewritten, or redistributed.