CNBC

Termination notices went out to 150 NBC News Group employees Wednesday as the financial health of the traditional television business continues to erode.

The cuts have been anticipated for months as NBC is seeing declines in TV ratings and ad revenue that are not being fully offset by a growing digital business.

Audience migration to streaming platforms has put pressure on legacy outlets across the media industry, leading to layoffs and cost-cutting.

A representative for the NBC News Group, which produces “Today,” “NBC Nightly News with Tom Llamas” and “Dateline,” declined to comment on the layoffs.

The cuts are also attributed to the spinoff of cable networks MSNBC and CNBC, according to a person briefed on the plans who was not authorized to comment. As of last week, NBC News no longer shares resources with the two outlets, which will become part of a new company called Versant. Some NBC News veterans have decided to join MSNBC, which will be renamed MS NOW.

Versant is the new stand-alone home for most of Comcast’s cable networks, including USA Network, the Golf Channel, CNBC and MSNBC. Comcast is spinning off the channels because it believes the mature outlets face a bleak future due to pay TV cord-cutting and are an albatross weighing down its stock price.

Some of the job losses are expected to be mitigated by a reallocation of resources aimed at bolstering the division’s digital operations. The employees affected by the cuts have been encouraged to apply for 140 jobs currently open across the NBC News Group.

The cuts amount to 2% of the NBC News Group, which also includes local TV stations owned by NBC and Telemundo.

A recent memo from NBC News Group Chair Cesar Conde said the division is launching a subscription streaming service later this year, although details have not been made public. The company already has NBC News Now, a free ad-supported streaming channel.

More cuts across the TV news business are expected through the end of the year. A significant reduction in staffing is expected at CBS News following the merger of parent Paramount with Skydance Media.

ABC News was hit hard by a 6% staff reduction across the ABC TV network enacted in March by parent Walt Disney Co. Those cuts followed a layoff of 40 news staffers in October 2024.

James Arthur McDonald Jr., an investor and financial analyst who frequently appeared on CNBC, was sentenced to five years in prison for defrauding investors in a multimillion-dollar scheme, the United States Attorney’s Office said on Monday.

McDonald, 53, a former San Gabriel Valley resident, was the CEO and chief investment officer of two Los Angeles-based companies: Hercules Investments LLC and Index Strategy Advisors Inc.

In late 2020, McDonald adopted a “risky short position” betting against the U.S. economy following the presidential election, with the idea that the combination of the COVID-19 pandemic and the election would trigger a major sell-off in the stock market, according to the Justice Department. However, when the expected market drop did not happen, Hercules’ clients lost between $30 million and $40 million.

McDonald “solicited millions of dollars’ worth of funds from investors” for the purposes of raising capital for Hercules at the start of 2021 after clients complained to the firm’s employees about their losses. However, in doing so, McDonald “misrepresented how the funds would be used” and failed to disclose the firm’s massive losses.

According to the Justice Department, McDonald obtained $675,000 from “one victim group” and then misappropriated most of the money including spending $174,610 at a Porsche dealership and transferring an additional $109,512 to the landlord of a home he was renting in Arcadia.

McDonald also defrauded clients at Index Strategy Advisors, his other firm, said the Justice Department, using less than half of $3.6 million he raised for trading purposes on personal and other expenditures.

McDonald commingled clients’ funds with his personal bank account and used the money to buy luxury cars, pay his rent, make credit card payments, pay off Hercules operating expenses and “to make Ponzi-like payments” to Index Strategy clients — including paying some of those clients using funds from other clients.

Prosecutors claimed that McDonald caused his victims more than $3 million in losses.

“To his victims, [McDonald] seemed to embody the American Dream,” prosecutors argued in a sentencing memorandum. “But looks can be deceiving, and as [McDonald’s] victims learned, their trust had been betrayed.”

In November 2021, McDonald failed to appear before the Securities and Exchange Commission to testify about the allegations he had defrauded investors, and remained a fugitive until last June when he was found at a residence in Port Orchard, Wash.

At the time of his arrest, law enforcement found a fake Washington, D.C., driver’s license with his photograph and the name “Brian Thomas.”

In April 2024, a U.S. District judge found McDonald and Hercules liable for violating federal securities law and ordered them to pay millions in disgorgement and civil penalties.

McDonald pleaded guilty to one count of securities fraud in February.

He will be ordered to pay restitution in this case before a United States district judge at a later date.

“E! News,” the nightly pop culture program that helped define cable network E! Entertainment Television, is going away.

The Comcast-owned network informed “E! News” staff Thursday the program will tape its final episode on Sept. 25. The channel’s news operation will continue to provide coverage online where it has a robust presence.

The staff was told the E! news audience prefers breaking entertainment coverage throughout the day on social media platforms instead of showing up at 11 p.m. Eastern for a live nightly show on traditional TV. About 20 jobs will be eliminated with the cancellation.

The network will continue to provide live coverage of red carpet events such as the Oscars and Golden Globes. E! also carries the People’s Choice Awards.

The “E! News” move was revealed ahead of the channel’s move to Versant, the spinoff company that will include other current Comcast cable channels such as MSNBC, CNBC and Golf Channel.

Comcast is putting all of its cable networks — with the exception of Bravo — into Versant to prevent the mature businesses from dragging down the company’s stock price.

“E! News” was launched in 1991 and was long a highly profitable business for the network as there were few TV outlets for live coverage of entertainment and pop culture. Ryan Seacrest was co-host of the program from 2006 to 2015. The program was canceled in 2020 but returned in 2022.

The show is currently co-hosted by Keltie Knight and Justin Sylvester. Some of the on-air talent from the program will have the chance to move to Versant.