Corus Entertainment, the parent company of Global Television Network and numerous radio stations, has announced layoffs due to programming adjustments nationwide in response to declining advertising sales and increasing debt. Unifor, the union representing media workers, disclosed that 43 positions will be eliminated, with specific breakdowns across different regions: 28 in Alberta, 2 in British Columbia, 5 in Winnipeg, 2 in Saskatoon, 3 in the Maritimes, and 3 in Ontario.
According to an internal memo from Corus obtained by CBC News, these changes are deemed necessary to ensure operational sustainability and provide enhanced flexibility. While some production for Global News broadcasts in Alberta will be centralized, the company reassured that local news content production will continue in provincial studios. Additionally, Corus mentioned plans to introduce new positions to bolster local news delivery.
One of the affected individuals, Scott Roberts, co-anchor of Global Edmonton’s 6 p.m. news segment, shared his departure on Instagram, expressing gratitude to viewers and solidarity with impacted colleagues. The Western Standard news website initially reported on the Corus restructuring.
Corus reiterated its commitment to maintaining local news services in Calgary and Edmonton despite centralizing some production. The company’s spokesperson, Annie Arnone, emphasized the addition of roles to sustain news programming in these markets, with further details expected to be revealed on-air in the coming weeks.
In a recent statement, Corus CEO John Gossling attributed the layoffs to ongoing challenges in linear television advertising demand, leading to significant revenue declines in radio and TV sectors. The company’s stock has plummeted approximately 70% in the past year, primarily due to financial strains stemming from its 2016 acquisition of Shaw Media, resulting in a substantial debt load amounting to $1.16 billion.
To alleviate its financial burden, Corus underwent a debt-for-equity swap approved by the Ontario Superior Court of Justice, aimed at reducing debt through the creation of a new parent corporation. The proposed transaction is pending regulatory approvals, including from the Canadian Radio-television and Telecommunications Commission.
Corus estimates potential annual interest savings of up to $40 million from this restructuring. This move follows similar job cuts at industry peers like Bell Canada and Rogers Sports & Media, underscoring the challenging landscape facing media companies.