Exclusive-Comcast plans to cut jobs at its biggest unit, housing broadband and pay TV, to centralize operations, source says
FILE PHOTO: Small toy figures with laptops and smartphones are seen in front of displayed Comcast logo, in this illustration taken December 5, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
Comcast is planning to cut jobs at its biggest unit that houses its Xfinity internet, mobile and pay television business, a source familiar with the matter said on Friday, as the company attempts to centralize operations and bolster its broadband business.
Starting January, Comcast will remove a layer between the corporate and regional offices, a shake-up that will streamline the management of the unit but also reduce headcount.
The connectivity and platforms unit, which also operates the Sky brand across Europe, currently has a three-tier management structure where the regional teams report to division heads, who then serve as the link to corporate headquarters.
Following the changes, regional leaders will report directly to a new executive overseeing operations nationwide, according to a memo sent to employees that was seen by Reuters. The source said there would be job cuts, but Comcast is still working on identifying which roles will be centralized to headquarters.
Over the years, Comcast has made several changes at the unit, centralizing operations including marketing, legal and finance at the corporate level.
The company also shifted from regional to national pricing, ending varying internet rates in cities and states, and standardizing offerings for customers across the country.
The company in mid-April offered new pricing plans along with five-year price locks for new broadband customers to stem churn in its Xfinity Internet service.
The latest news of potential job cuts comes as the company works on turning around its broadband business, which has suffered subscriber losses to wireless competitors such as AT&T, T-Mobile and Verizon.
In the memo to employees, the company said front-line teams supporting customers - such as those in customer service and retail - will not be impacted. It did not disclose how many positions would be affected.
"This change is not a reflection of anyone's contributions — it is about simplifying how we work so we can compete more effectively," according to the memo.
