Univision to Cut Jobs

Nov 2, 2005  •  Post A Comment

Spanish-language broadcaster Univision Communications said Thursday it is taking several measures to improve financial performance, including trimming the employee headcount at its television operations by nearly 6 percent.

The company declined to say where exactly the job cuts would come and would only say that the moves are being taken to reduce the company’s overall cost structure and should result in annual savings of around $50 million. The company also expected to book a charge of $25 million in the fourth quarter.

By reducing the headcount, the company will be able to take full advantage of the anticipated high-single-digit growth projected for the fourth quarter in revenue at Univision’s stations and various networks, said President and Chief Operating Officer Ray Rodriguez to analysts on the company’s third-quarter earnings call.

For the quarter, the company reported an 8 percent increase in net income to $79.2 million, while revenue rose 4 percent to $497.5 million.

The company’s television division posted a 5 percent gain in revenue to $343.3 million, driven by double-digit ratings growth at the company’s two broadcast networks, Univision and TeleFutura, and the company’s cable network, Galavision.