Vivendi May Cut Paris, N.Y. Jobs

In an effort to cut costs, financially strapped Vivendi Universal may eliminate more than half of its 200 staff positions in New York as well as reduce by 25% the 370 staff positions at the French utility and media conglomerate’s Paris headquarters.

“We have, over the past few months, been studying ways in which to develop Paris and New York into a more efficient organization,� said a Vivendi spokesperson, who verified that the proposed staff cuts were recommended by management consultants hired by former Chairman Jean-Marie Messier. Exactly which jobs would be eliminated and when have not been announced.

After Messier moved from Paris to New York a year ago, he hired Constantin Group to analyze the need for two separate corporate staffs. But by the time the management consultants finished their report this month, Messier had been ousted by the Vivendi board and new Chairman Jean-Rene Fourtou had made it clear he would stay in Paris. Vivendi shares have fallen more than 70% as the company struggles under a $19-billion debt burden.

In all, Vivendi plans to cut 230 jobs, according to sources familiar with the company’s plans--100 positions in Paris and 130 in New York.

The single largest New York department is human resources, followed by the aviation staff, which manages the company’s fleet of private planes. The next largest staff handles information technology.

Teams of lawyers, accountants and investor relations and communication specialists also are based in New York.

The management consultants did not review staffs at either of Vivendi’s American entertainment companies, Universal Studios Inc. and Universal Music Group.