Corus Entertainment, the parent company of the Global Television Network and various radio stations, has announced significant alterations to its programming nationwide, leading to the elimination of numerous positions. This decision comes in the wake of Corus facing challenges such as declining advertising revenue and mounting debts.
According to Unifor, the union representing numerous media employees including those at Corus, a total of 43 jobs will be lost as a result of these changes. The union expressed concerns about the impact on local news, especially in Western Canada, emphasizing the predicted scenario has now materialized.
The breakdown of job cuts by region as per Unifor includes 28 positions in Alberta, 2 in British Columbia, 5 in Winnipeg, 2 in Saskatoon, 3 in the Maritimes, and 3 in Ontario.
An internal memo from Corus, obtained by CBC News, stated the necessity of these adjustments to ensure the sustainability of their operations and provide increased flexibility. While some production of Global News broadcasts for Alberta will be centralized under the new plan, local news content will continue to be produced in provincial studios. Additionally, the company plans to introduce a yet undisclosed number of new roles to support local news delivery.
Scott Roberts, co-anchor of Global Edmonton’s 6 p.m. newscast, shared on Instagram that he will no longer be reporting the evening news due to the significant cuts to local news coverage. He expressed gratitude to the viewers and solidarity with his affected colleagues.
The changes at Corus were initially reported by the Western Standard news website. In response, a Corus spokesperson affirmed the company’s commitment to local news delivery in Calgary and Edmonton. Although some roles are impacted by the centralization of production, Corus will be creating additional positions to ensure news programming continuity in these markets.
Corus recently faced declines in both radio and TV revenue, with CEO John Gossling attributing this to ongoing challenges in linear television advertising demand. The company’s shares have plummeted by nearly 70% over the past year, primarily due to financial pressures stemming from its 2016 acquisition of Shaw Media.
To alleviate its debt burden, Corus underwent a debt-for-equity swap with lenders, approved by the Ontario Superior Court of Justice. This restructuring involves the creation of a new parent corporation, NewCo, with lenders forgiving a significant portion of the debt in exchange for ownership. The company anticipates savings of up to $40 million in annual interest costs through this transaction.
The job cuts at Corus follow similar actions at industry counterparts such as Bell Canada and Rogers Sports & Media. Rogers recently announced the elimination of 230 positions, including the closure of radio stations in multiple Canadian cities, while Bell Canada confirmed plans to cut nearly 700 jobs in a restructuring effort in the previous month.
