CBS fires nearly 30 people in its entertainment division

Bracing for continued tough times, CBS Corp. this week became the latest media company to reduce the number of employees in its entertainment division.

CBS fired nearly 30 people, primarily in its network programming but also at its CBS Paramount Network Television production studios in Los Angeles and Studio City, two people close to the network said.

The highest-profile cuts included Maria Crenna, the second in command at CBS Paramount, and Brian Banks, head of comedy development. The New York company declined to specify the number or the percentage of cuts.

“These steps are designed to deploy our resources in line with market conditions, while at the same time making sure that development and production needs are met at the network and the studio -- both now and in the future,” CBS said in a statement.

Most media companies are grappling with the deepening recession, which has prompted some of their biggest advertisers, including car companies and retailers, to slash their advertising budgets.

CBS is particularly vulnerable because it derives more than 70% of its revenue from television, radio and billboard advertising.

Robert J. Coen, forecasting director for ad-buying company Magna, predicted last week that advertising spending in the U.S. probably would fall 4.5% in 2009 to $258.7 billion.

“The main source of the advertising slowdown has been drains on consumer spending, slow income growth, high debt and the rise in many consumer expenses,” Coen wrote in a report. “There is little likelihood of relief for consumers in 2009.”

Last week, NBC combined its TV network and studio operations and laid off about 40 people in Los Angeles as part of NBC Universal’s efforts to reduce its budget next year by $500 million. Walt Disney Co. also is considering a workforce reduction and a possible consolidation of its ABC network and TV studio. An ABC spokesman declined to comment.

CBS has no plans to combine its network and studio operations, one executive said.

The layoffs come despite CBS’ success in prime time. The network has garnered a growing audience in recent weeks with such popular shows as “Two and a Half Men,” “NCIS” and its latest hit drama, “The Mentalist.”

Early this year, CBS eliminated several high-profile newscast anchors and workers at its television stations, including KCBS-TV Channel 2 and KCAL-TV Channel 9 in Los Angeles.

“Until automotive, retail and financial services get stronger, the TV stations are going to be challenged,” CBS Chief Executive Leslie Moonves said last week.

“Those are three of our most important categories, probably, with automotive at the top,” he said.

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meg.james@latimes.com