Uh-Oh Elmo! Sesame Workshop Cutting 20%

NEW YORK — The crisis on Wall Street is plaguing Sesame Street.

Sesame Workshop, the nonprofit producer of "Sesame Street" and other kids' programs, is cutting about one-fifth of its work force because of the economic downturn.

The New York-based company said Wednesday that it's eliminating 67 of 355 staff positions.

Declaring it is "not immune to the unprecedented challenges of today's economic environment," the company pronounced a need "to operate with fewer resources in order to achieve our strategic priorities."

The statement reiterated the organization's mission "of helping children reach their highest potential here and around the globe."

Best known as the home of such Muppet characters as Big Bird and Elmo, Sesame Workshop was founded in 1968 as Children's Television Workshop, then unveiled the groundbreaking "Sesame Street" as a literacy-building initiative a year later. That show, which remains a worldwide hit, was the first step toward a media empire that encompasses television, books, toys and online programing.

Among the company's early TV efforts is "The Electric Company," which aired during the 1970s and was revived with new episodes on PBS in January.

Sesame Workshop gets revenue from product licensing and the sale of its programs to PBS and syndication. The company is also funded by government agencies, foundations and corporations.

Total revenue was $145 million in 2008, with operating expenses totaling $141 million, according to the company's Web site.

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On the Net:

http://www.sesameworkshop.org

Comments

[Ares1]

They can start of by laying off most of those monsters that have just popped up in recent years.

[roger3815]

This press release was sponsored by the letters F and U.

[lincheryl]

good one!

[MsRealTalk]

Awww man, that's really sad to hear :( I loved Sesame Street when I was growing up! And all the Muppet movies too. Things really never were the same since Jin henson died. What ever happend to Fraggle Rock? That was like my second favorite show....

[Saritabonitas]

Can you tell me how to get, how to get to skid row? Move over Oscar the grouch, that trash can is big enough for the both of us...

[Snuffleupagus]

Yeah, this sucks balls.

They've reneged on the 'all the spaghetti you can eat' part of my contract. No fu*king way I can survive on cabbage alone.

[IntrepidReader]

I, too, have to wonder where the money has gone from all the marketing tie-ins and products that are associated with this show and have been for years. Elmo dolls alone are bound to have earned millions on top of the immense revenue generated by all the other muppet dolls, toys, movies, records, advertising spokes-characters, "guest appearances" on other TV shows, etc, etc.

The Sesame Workshop must have financial management on a level so abysmal that you would expect to find it only in banks, brokerages, or the government.

[InofTouch]

Get Some Facts, and get back to me

[totaleclipse]

You really should learn a bit before you comment on items. Sesame Workshop is an organization. As such it is bound to create budgets yearly and maintain those budgets. The success of Tickle Me Elmo dolls saved SW. They were able to devote more money towards development of international versions of Sesame and create new programs. They also rewarded their workers with a flat end-of-year bonus that year (and trust me, as someone who intimately knows this organization, many of the workers there are significantly underpaid - ESPECIALLY considering the fact that they are based in NYC!).
Sesame Workshop raises money from organizations and agencies such as USAID. Budget cuts in both the gov't and corporate world impact the amount of money given to SW. As does a drop in donations to local PBS stations.
All I can say is that I hope some of the higher level execs and top tier performers such as Kevin Clash were asked to take a pay cut before cutting so many people from the payrolls.

[enjen]

All the proceeds beyond running the company go into global educational initiatives, grants, afterschool programs, etc. They basically operate like a non-profit. Also, Sesame Street characters and Jim Henson's Muppets are separate entities -- the latter is owned by Disney, the former is not.

[dissanayake]

I heard that Elmo and Bert were moving in with Kermit.Because Ms Piggy dumped him.

[bpress]

At least Cooke Monster will be busy with the government's public health education for reduction of sugar and nutrition.

[EndangeredJackalope]

How does a company, that slashed its working staff decades ago (no more teams of children psychologists vetting the material for educational content), seriously downsized its production costs (half the show dedicated to green screen Elmo's World, anyone?), and has spun its characters into merchandise powerhouses.... still need to cut staff? What happened to the Children's Television Workshop (retooled as Sesame Workshop) that it can't operate when it thrived in a recession 30 years ago?

Where did all the money born of Jim Henson's creativity end up? What jerk bought ownership stake and milked it for personal profit, stripping it down and no reinvesting profit enough that it can't stand alone today?

[totaleclipse]

After Jim Henson's death - the only Muppets purchased by SW were those associated with Sesame Street (EXCEPT Kermit the Frog. Notice how he's not on the show anymore?)
Henson then sold the muppet rights to a German company who didn't know what the heck to do with them and I think I recall a horrible Pizza Hut commercial with Miss Piggy. The German company realizing they had to get rid of the investment they were losing money on due to mismanagement sold the rest of the Henson characters to Disney. And so they will be pimped out forever more.

Sesame Workshop is a NON-PROFIT ORGANIZATION. They have to spend their full budget every year. It's not a Disney-like company.

[EndangeredJackalope]

So does SW hold the copyright on Elmo & the crew? Are they reaping the rewards of merchandising, or is someone else? I understand the Non-Profit demands, but not their need to downsize after decades fo doing so in staffing/research and production (esp after operating full throttle in the 70s/80s recession) -- is it just the loss of NEA/Fed funding?

[tuckgraph]

Grover must be elated. Norquist, I mean. Zing!

[Tamoomoo]

Sad. I loved Sesame Street as a kid. Infotainment.

[lukebenward]

The new Electric Company is crap. I tried watching it. Couldn't get past 11.

[lukebenward]

'Ah, 'D' is for downsized. That's good enough for me."

This episode brought to you by the letters 'B' and 'S' and the numbers (chapter) '11'.

[jrb35]

Here's a response from Ernie & Bert:

http://www.youtube.com/watch?v=InZNBcJTmWs

[TattereD 1]

Ahh man, that made my night! Thanks for posting it. =)

[linton]

I hope Elmo gets to keep his job.

[Copeword]

Of course he will, but it's still sad to see what's happening right now.

[xphoon]

Umm....look they're not axing Kevin Clash, Carrol Spinney, Steve Whitmire (new Kermit) or any of the major Muppet performers (are we still allowed to call Sesame Street Muppets "Muppets" or has King Walt's Lawyers done away with that...). I'm not even entirely sure they techinically work for the same entity.