As revenue slumps from a “challenging advertising environment,” Canadian media company Corus Entertainment — which houses brands like Global News and YTV — is “aggressively” cutting costs, continuing layoffs and shutting down parts of its business.
In the company’s third-quarter earnings call on Monday, co-chief executive officer John Gossling said that by the end of August, Corus expects it will have reduced its full-time workforce by 25 per cent — or nearly 800 jobs — compared with September 2022. By the end of May, Corus had cut about 500 employees.
The company will also stop operating two AM radio stations in Vancouver and Edmonton, and Gossling said it has identified more opportunities for savings in the future. “We can and will do much more,” he said.
Corus reported $331.8 million in revenue from March to May, a decrease of more than $65 million from the same period last year.
That drop came as television revenue in the quarter fell by 17 per cent compared with last year to $308.2 million, while radio revenue slipped by 10 per cent to $23.6 million.
The company’s financial troubles are following broader trends in the media industry.
In February, Bell Media cut multiple television newscasts. This came after parent company BCE Inc. announced it was eliminating 4,800 jobs in its largest round of layoffs in nearly three decades and selling 45 of its 103 regional radio stations.
Meanwhile, Nordstar, the company that owns the Toronto Star and other newspapers, announced in September 2023 that it was cutting 600 jobs and seeking bankruptcy protection for its Metroland division, which owns more than 70 local newspapers.
At the time, Metroland said the reason for the decision was unsustainable financial losses due to changing advertiser and consumer preferences.
During Monday’s earnings call, Corus co-chief executive officer Troy Reeb said local news, particularly in small markets, is challenging.
“There was a time when a local television station could have … a good hold on the local advertisers in the market,” Reeb said. “Now local advertisers can go to literally hundreds of other options.”
He said small markets are “where the focus of our restructuring efforts have been and will continue to be.”
However, Reeb also said that Corus’s national news operations perform “quite well” and are one of the company’s drivers of growth, particularly in digital spaces.
Corus expects TV advertising revenue to decline by a similar amount in the fourth quarter, from June to August, Gossling said.
The company has attributed the advertising slump this year in part to lingering effects from the 2023 Hollywood strikes that delayed production of key programming, along with inflation and challenges…
Read More: Corus Entertainment ‘aggressively’ cutting costs, laying off more employees
