Comcast Corp. announced plans to cut jobs and take a charge exceeding $1 billion in the fourth quarter as part of a restructuring effort to address declining broadband customers and streamline operations ahead of its planned separation from NBCUniversal. The Philadelphia-based telecommunications giant reported a net loss of 144,000 domestic residential broadband customers in the third quarter, up from 91,000 losses in the same period last year, according to its earnings report released Thursday.
The company’s connectivity and platforms business, which will remain after the NBCUniversal spinoff, saw revenue decline 2.7% year-over-year to $19.7 billion. Comcast’s Chief Financial Officer Jason Armstrong described the charge as part of "transformation efforts" rather than a cost-cutting exercise, emphasizing the goal of simplifying operations to improve decision-making and investment capacity. Layoffs will affect the connectivity and platforms unit, with NBCUniversal employees excluded from this round, sources familiar with the matter told the Los Angeles Times.
Competitive pressures and strategic shifts
Comcast’s broadband business faces intensified competition from fixed wireless services offered by major carriers and satellite internet providers, including Elon Musk’s Starlink. The company has responded by bundling mobile services, adding 368,000 wireless lines in the quarter. Despite these efforts, Comcast’s stock has declined 16% this year heading into the earnings announcement.
Media division remains strong amid broadband challenges
While broadband losses deepened, Comcast’s media businesses—including NBCUniversal’s studios, theme parks, and streaming service Peacock—showed growth. Peacock reported a quarterly pre-tax profit of $261 million, a significant improvement from a $217 million loss in the prior year, driven by high viewership for the FIFA World Cup and original programming like Love Island USA. The media division’s revenue rose 13% to $5.4 billion, with Peacock subscriber growth reaching 48 million, up 17% year-over-year.
NBCUniversal’s theme park unit, however, faced weaker demand in Orlando, partially due to reduced tourism from China amid geopolitical tensions. The company also highlighted the success of its film The Odyssey, which became the highest-grossing release in Universal Studios’ history, contributing to an 18.6% increase in pre-tax profit for the unit.
Restructuring and future outlook
Comcast first announced plans in January 2025 to refocus on its mobile business and introduce more competitive pricing amid stagnating broadband growth. The company reiterated its commitment to spinning off NBCUniversal and its European media business Sky by mid-2027, creating two separate publicly traded entities. Co-CEO Brian Roberts stated in June that the split would take about a year to complete, with the connectivity and platforms unit retaining the Comcast name.
Analysts noted that while the broadband business continues to struggle, the media division’s profitability and Peacock’s growth provide a counterbalance. "To be sure, Comcast has a lot of wood to chop before its broadband business returns to positive revenue growth," said veteran cable analyst Craig Moffett. The company’s ability to stabilize broadband losses and leverage its media assets will be critical as it navigates this transition.