John Malone’s Tele-Communications Inc. followed through on its rumored cost-cutting plan on Thursday, announcing sweeping layoffs that will reduce the company’s corporate and field employment base by about 2,500 employees and managers, representing 6.5% of TCI’s entire workforce (Daily Variety, Dec. 5).
In addition, senior executives will incur salary reductions and freezes until the company “meets its business objectives,” according to a statement released by the cable giant.
That same statement confirmed that in TCI’s 1997 budget process, it is reviewing “all expenses not directly related to serving its customers and to providing them a quality product,” and is taking the actions to improve the company’s financial performance and competitive posture and to reduce its considerable debt.
The massive job trims from TCI’s 38,500-person staff are being driven by boss Malone’s insistence that the company immediately improve its dismal fiscal picture and cash flow as well as boost its increasingly weak stock value.
Malone has been concerned about TCI’s escalating operating costs and felt the downsizing was necessary to turn the company around.