Corus Entertainment, the parent company of the Global Television Network and numerous radio stations, is set to implement programming adjustments nationwide, leading to the elimination of several jobs. The decision comes amidst Corus facing a continuous decline in ad revenue and increasing debt levels.
Unifor, the union representing a significant number of media employees, disclosed that 43 positions will be cut, emphasizing concerns over the impact on local news, particularly in Western Canada. The breakdown of the job reductions by region includes 28 in Alberta, 2 in British Columbia, 5 in Winnipeg, 2 in Saskatoon, 3 in the Maritimes, and 3 in Ontario.
In an internal communication obtained by CBC News, Corus explained that the modifications are vital to ensure the sustainability of operations and enhance operational flexibility. While some production activities for Global News broadcasts in Alberta will be consolidated, local news content production will continue in the province. Corus also plans to introduce additional undisclosed positions to support local news delivery.
Scott Roberts, co-anchor of Global Edmonton’s 6 p.m. newscast, expressed disappointment over the changes, revealing that he will no longer be reporting the evening news. He thanked viewers for their support and expressed solidarity with affected colleagues. The news regarding the reorganization at Corus was initially reported by the Western Standard news website.
Corus reiterated its commitment to local news, assuring that local news coverage will be maintained in Calgary and Edmonton. The company’s spokesperson Annie Arnone mentioned that while certain roles will be centralized, new positions will be added to continue news programming in these regions. Individual personnel changes will be reflected on air in the upcoming weeks.
Declining revenue in radio and TV sectors has been a significant challenge for Corus, with CEO John Gossling attributing it to ongoing pressure on linear television advertising demand. The company’s stock has plummeted nearly 70% in the past year, mainly due to financial strains, including a substantial debt load stemming from its acquisition of Shaw Media in 2016.
A court-approved debt-for-equity swap between Corus and its lenders aims to alleviate the debt burden, with lenders forgiving around $500 million in debt for a significant ownership stake in a new parent corporation. This restructuring move is crucial for Corus to reduce annual interest costs and navigate its financial challenges.
The layoffs at Corus follow recent job cuts at other major industry players like Bell Canada and Rogers Sports & Media. Earlier this month, Rogers announced the elimination of 230 positions, including the closure of radio stations in multiple cities. Bell Canada also revealed plans to cut nearly 700 jobs, as part of a broader restructuring that impacted thousands of positions and led to the divestment of various media assets.