Comcast Corp. announced plans to reduce its workforce within its cable, broadband, and wireless divisions while preparing to record a charge exceeding $1 billion in the fourth quarter. The Philadelphia-based company is undertaking these measures to address ongoing customer losses and improve operational efficiency ahead of its planned spin-off of NBCUniversal next year.
The company reported a loss of 144,000 domestic residential broadband customers in the third quarter, a notable increase from the 91,000 lost during the same period last year. Concurrently, revenue in its connectivity and platforms segment declined 2.7% to nearly $19.7 billion. Comcast’s Chief Financial Officer, Jason Armstrong, said on the company’s fiscal third-quarter earnings call that the substantial charge primarily reflects “transformation efforts.” He emphasized that the cost is not merely related to cutting expenses but is intended to simplify operations, accelerate decision-making, and create capacity for future growth investments.
The planned layoffs will be distributed across Comcast’s connectivity and platforms unit, which will remain as the core business after NBCUniversal’s separation. Sources familiar with the matter indicated that NBCUniversal employees are not expected to be affected by this round of job cuts. Comcast employed approximately 179,000 people at the end of last year.
Comcast’s broadband segment faces increasing competition from fixed wireless and satellite internet providers, including Elon Musk’s Starlink. In response, the company has been bundling mobile services with its offerings, gaining 368,000 wireless lines in the quarter. Despite these efforts, Comcast’s stock has declined roughly 16% this year prior to Thursday’s trading session. Industry analyst Craig Moffett noted that while Comcast has significant challenges to overcome before achieving positive revenue growth in broadband, the prevailing negative outlook on cable broadband may be overstated.
The company’s media division showed growth, with revenue in its content and experiences business rising 6.5% year-over-year to $10.5 billion. This increase was bolstered by the strong box office performance of Universal Pictures’ “The Odyssey,” directed by Christopher Nolan, which has generated nearly $1.8 billion worldwide, making it Universal’s highest-grossing film. The surge in theatrical revenue contributed to a 76.6% increase in that segment. However, Comcast’s theme parks experienced a weaker quarter, with executives warning that softness could persist into the first half of next year.
Comcast reiterated its intention to spin off its TV, film, and streaming operations into a separate, publicly traded company, a process expected to conclude by next summer. Following the separation, Mike Cavanagh is set to become CEO of NBCUniversal, while Michael Angelakis, Comcast’s former CFO, will return to lead Comcast. After the announcement, Comcast shares closed Thursday at $22.84, gaining just over 3%.