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Layoffs, pay cuts. Troubled firm? No. 'The Tonight Show.'

'The Tonight Show' is laying off at least 20 workers in major budget restructuring. Host Jay Leno, other staffers accept pay cuts to avoid more layoffs. 

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Margaret Norton/NBC/AP/File
This photo released Monday by NBC shows first lady Michelle Obama, left, Olympic gold medalist Gabby Douglas, and host Jay Leno during a taping of "The Tonight Show with Jay Leno," in Burbank, Calif. The show is losing some two dozen staffers as a result of NBC budget cuts.

Tonight Show鈥 host聽Jay聽Leno聽is taking a significant reduction in pay and roughly two dozen staffers are being let go as part of a major budget restructuring at the late-night talk show.

Although 鈥淭he Tonight Show鈥 remains the top-rated late-night program, from a financial standpoint it is only break-even, according to a person familiar with the economics of the show. One reason for that is that the production budget of the show was not reduced when聽Leno聽moved back to late night after his ill-fated stint in prime time during the 2009-10 television season.

Leno鈥檚聽current salary is between $25 million and $30 million and he volunteered to take a cut if it would save some jobs. A person close to the network thought聽Leno鈥檚聽new salary is likely around $20 million. Bruce Bobbins, one of聽Leno鈥檚聽spokesmen, declined to comment.

In a statement later Bobbins said, 鈥淛ay鈥檚聽foremost concern is for the wonderful people who work for 鈥楾he Tonight Show.鈥 He did what was necessary to ensure their well-being.鈥

While an NBC spokeswoman declined to comment on the situation, the job losses are said to be between 20 and 25 people and many other senior staffers also agreed to pay cuts.

The weekly budget for聽Leno鈥檚聽prime time show was approximately $2.3 million and it stayed there when he returned to late night and Conan O鈥橞rien was sent packing. The budget now will be closer to $1.7 million, which is in the range of what it was during聽Leno鈥檚聽previous late-night stint.

Leno聽is not the first late-night host to agree to a salary reduction. In 2009, CBS restructured David Letterman鈥檚 deal and reduced his salary and the budget of the show.

Whether NBC will look to other areas to make additional cuts is yet to be determined. Earlier this year, the network trimmed its marketing and promotions staff.

News of the cuts were first reported by Deadline Hollywood.

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