Corus Entertainment, the owner of the Global Television Network and various radio stations, is set to undergo programming adjustments that will lead to numerous job cuts nationwide. This decision arises as Corus confronts a continual decline in advertising revenue and escalating debt issues.
The union Unifor, which represents a significant number of media professionals, disclosed that 43 positions will be eliminated within Corus. Unifor’s national president Lana Payne expressed concerns about the impact on local news, particularly in Western Canada, as a result of these changes.
The breakdown of job cuts by region is as follows: 28 in Alberta, 2 in British Columbia, 5 in Winnipeg, 2 in Saskatoon, 3 in the Maritimes, and 3 in Ontario. In an internal memo obtained by CBC News, Corus emphasized that these modifications are vital to ensure operational sustainability and enhance operational flexibility.
While some production activities for Global News broadcasts in Alberta will be centralized, Corus assures that local news content will still be produced in provincial studios. The company also plans to introduce additional undisclosed roles to bolster local news delivery.
Scott Roberts, co-anchor of Global Edmonton’s 6 p.m. newscast, shared his disappointment on Instagram regarding the cuts to local news coverage. The changes at Corus were initially disclosed by the Western Standard news website.
Corus remains committed to local news services in Calgary and Edmonton amid the adjustments. The company’s spokesperson, Annie Arnone, stated that while production centralization has affected certain roles, new positions are being created to uphold news programming in these regions.
The company’s CEO, John Gossling, attributed the revenue decline to ongoing challenges in linear television advertising demand. Corus’s stock has plummeted nearly 70% over the past year, largely due to financial strains following the Shaw Media acquisition in 2016.
Corus recently obtained court approval for a debt-for-equity swap aimed at alleviating its financial burden. The proposed transaction involves lenders forgiving a portion of the debt in exchange for ownership stakes in a new parent corporation. This move is subject to regulatory approvals.
The restructuring initiative is anticipated to save up to $40 million annually in interest expenses for Corus. These job cuts coincide with similar workforce reductions at major competitors like Bell Canada and Rogers Sports & Media, reflecting broader industry challenges in the media sector.