Sesame Street Layoffs

The recession has gone from Wall Street to Main Street to...well, Sesame Street. According to Bloomberg, Sesame Workshop, the nonprofit organization that produces the hit show "Sesame Street," is cutting 20 percent of its workforce.

"After careful review, we have concluded that we will have to operate with fewer resources in order to achieve our strategic priorities," New York-based Sesame Workshop said today in an e-mailed statement. The company said it eliminated 67 of 355 staff positions.

"Sesame Street," featuring characters such as Big Bird and Oscar the Grouch, has been on the air since 1969 and is the most widely viewed children’s TV show in the world, according to the producers. Three months ago, Sesame Workshop Chief Executive Officer Gary Knell told Bloomberg Radio that while the company was "able to withstand" recessions, it was not "immune."

Sesame Workshop receives income from product licensing and the sale of "Sesame Street" and other programs to the Public Broadcasting Service and overseas syndication. The company is also funded by government agencies, foundations and corporations including Astra Zeneca LLP and McDonald’s Corp., according to its Web site.

Revenue at the company increased 12 percent to $145 million in 2008, while operating expenses rose 14 percent to $141 million, according to the Web site. Program expenses at Sesame Workshop, which include content distribution and product licensing, totaled $116.4 million last year, up from $100 million the year before.

$145 million in revenue? $141 million in expenses? That's a profit of only $4 million. You would think that the world's #1 most watched children's TV show would be worth billions!