Comcast is reportedly preparing significant job cuts as it restructures its cable and connectivity businesses, faces intensifying broadband competition and expands its use of artificial intelligence (AI) to reduce operating costs.
The development follows the company’s third-quarter 2026 earnings report, which showed declining revenue and adjusted profits alongside continued losses in residential broadband subscribers. According to Variety, the planned layoffs are expected to affect Comcast Cable rather than NBCUniversal, although the number of positions involved remains unclear.
Credits: ET Telecom
Comcast Loses Broadband Customers Amid Competition
Comcast reported $29.3 billion in revenue for the third quarter, down 6.1% year over year from $31.2 billion on a reported basis. The decline partly reflected the separation of Versant and the sale of Sky’s German operations. On a pro forma basis, revenue increased 0.5%.
Operating income fell to $5.32 billion from $5.53 billion, while adjusted EBITDA declined 5.8% to $9.11 billion. Adjusted diluted earnings per share dropped 4% to $1.07, although net income rose 3.5% to $3.45 billion.
The company’s broadband business remains under pressure from fibre providers and wireless competitors offering alternative connectivity options, often at lower prices. Comcast lost 144,000 domestic residential broadband customers during the quarter, highlighting the challenge of retaining subscribers in an increasingly competitive market.
Its wireless business, however, continued to expand. Comcast added a net 368,000 domestic wireless lines, bringing its total to 10.6 million at the end of September. Nearly 45% of its broadband customers subscribed to Gigabit+ plans, while premium unlimited plans accounted for approximately 40% of postpaid phone connections.
AI Agents Become Part of Comcast’s Cost-Cutting Strategy
Alongside restructuring, Comcast is increasing its deployment of AI agents across customer service operations.
Chief Financial Officer Jason Armstrong said the company was using AI to simplify customer interactions and improve service. According to Armstrong, the technology has already reduced service contact rates by approximately 20%.
Lower contact rates could help Comcast reduce the resources required to handle routine customer enquiries, potentially lowering operating costs. However, the company has not publicly established how much of its reported reduction translates into direct savings or how many jobs could ultimately be affected by AI adoption.
The planned layoffs come as telecommunications companies increasingly explore automation to manage customer support, network operations and other repetitive tasks. For Comcast, the challenge will be balancing efficiency gains with customer satisfaction as it competes against alternative broadband providers.
Comcast Restructures Ahead of Major Corporate Split
The job-cut plans also coincide with Comcast’s broader corporate restructuring.
The company intends to separate NBCUniversal and Sky into an independent, publicly traded business through a tax-free spin-off to shareholders. The transaction is targeted for completion around mid-2027.
Following the separation, NBCUniversal will oversee Comcast’s film studios, theme parks, television networks, news operations and Peacock streaming service, with Sky serving as its European arm.
Comcast will concentrate on broadband, wireless, business services and cable television, allowing it to focus more directly on connectivity and telecommunications.
Credits: Reuters
What Comes Next for Comcast?
Comcast’s latest results underline the pressure facing traditional cable operators as customers gain more alternatives for internet connectivity. Although its wireless business is growing, continued broadband subscriber losses could make cost control and operational efficiency increasingly important.
AI adoption may help the company streamline customer service, but the reported job cuts signal that employees could also face the consequences of its transformation.
With the corporate separation approaching, Comcast now faces the dual challenge of rebuilding momentum in broadband while reshaping its operations around automation and connectivity services.
The restructuring also reflects a wider shift across the telecommunications industry, where companies are prioritising automation and leaner operations. However, Comcast’s ability to retain broadband customers while protecting service quality will remain critical to its long-term competitiveness and profitability.
