Olympics: USOC lays off 54 as cost-cutting measure
Associated Press
COLORADO SPRINGS, Colo. — The U.S. Olympic Committee laid off 54 employees today as a key part of its plan to trim its budget by 5 percent to deal with rough economic times.
The layoffs equal 13 percent of the USOC work force and will come at every level, including senior management, according to a news release sent by the federation. There were no specifics on who was losing jobs.
The USOC's goal is to trim its 2009 operating budget from $142.6 million to $135.5 million. Layoffs will affect the USOC's main operation in Colorado Springs, as well as offices in Lake Placid, N.Y. and Chula Vista, Calif.
The cutbacks come as no surprise, announced earlier this month.
The slow economy also is impacting USOC sponsorship.
Five of 22 of the USOC's key sponsor deals — worth about $15 million each — remain unfilled, though at least two of those are thought to be near renewal.
Sponsorship and other commercial activity accounts for about 48 percent of the USOC budget, while TV money makes up a third. The rights fees for the 2010 and 2012 Olympics are about 33 percent higher than they were for the last two Olympics. The USOC also had $103 million in reserve at the end of the four-year budget cycle that closed last year.
Still, Scherr said earlier this month that cuts were necessary to give the USOC breathing room in case the economy continues to deteriorate.
Other cost-cutting moves announced Wednesday included:
—Eliminating 11 positions that were in the 2009 operating budget but not yet filled.
—Reorganization of some divisions within the federation to avoid duplication.
—A freeze in management salaries for 2009.
—Tighter limits on spending for administrative travel, meetings and events. Administrative costs total about 16 percent of the USOC budget.
Not affected will be direct financial support provided to athletes and their national governing bodies ($56 million in 2009) and USOC support for the bid to bring the 2016 Olympics to Chicago.
The USOC joins the NFL, NBA and other sports organizations that have been forced to make staff cuts because of the economy.