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NBCUniversal cutting senior management pay 20 percent amid coronavirus ad revenue drops

NBCUniversal cutting senior management pay 20 percent amid coronavirus ad revenue drops
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NBCUniversal on Tuesday sent a staff memo announcing pay cuts for its senior management amounting to 20 percent while reducing pay by 3 percent for employees making more than $100,000.

The moves come as a result of declining revenue amid the coronavirus pandemic, according to Chief Executive Jeff Shell in the memo.

“In order to deal with the depth of this crisis and its effect on our company we need to address our cost base,” Shell wrote, adding that travel and entertainment budgets will also be cut, along with the use of outside consultants.

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“There is no question that the current environment is having a significant impact on our company’s performance,” Shell also wrote. “Advertising revenue is starting to fall."

NBCUniversal owns Universal movie studios and theme parks, NBC's broadcast network and MSNBC, CNBC and USA Network on cable television.

NBC was also supposed to air the 2020 Summer Olympics from Tokyo, but the event has been postponed at least until the summer of 2021.

The network paid $1.45 billion for the broadcast rights to the games.

Several media companies have furloughed employees or enacted pay cuts since the pandemic shut down most of the country starting in March.

The news comes two days after the announcement that the chairman of NBC News, Andy Lack, is stepping down.

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Lack, 72, will transition out of his role by the end of the month. His departure had been rumored for some time internally, according to sources.

Cesar Conde, the chairman of NBCUniversal's International Group and Telemundo, will be responsible for overseeing NBC News, MSNBC and CNBC, according to the announcement.

NBC Sports Group chief Mark Lazarus, who also oversees NBC's local affiliates, will be responsible for the company's entertainment division.