Corus Entertainment, the parent company of the Global Television Network and several radio stations, has announced significant programming adjustments leading to the loss of numerous jobs nationwide. This decision comes amid ongoing challenges for Corus, including a decline in advertising revenue and escalating debt issues.
Unifor, the union representing a substantial number of media professionals, disclosed that 43 positions will be eliminated, emphasizing the impact on local news coverage, particularly in Western Canada. The breakdown of job cuts by region includes 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, the Toronto-based company deemed these changes necessary to ensure operational sustainability and enhance operational flexibility. While certain aspects of Global News production for Alberta will be centralized, local news content will continue to be produced in provincial studios. Corus also plans to introduce new positions to support local news delivery.
One of the affected individuals, Scott Roberts, the co-anchor of Global Edmonton’s 6 p.m. news broadcast, shared on Instagram that he will no longer be reporting the evening news due to the significant cutbacks in local news coverage. He expressed gratitude to viewers and solidarity with his colleagues impacted by the layoffs.
The news of these alterations at Corus was first reported by the Western Standard news website. In response to inquiries, a Corus spokesperson reiterated the company’s commitment to maintaining local news delivery in Calgary and Edmonton, stating that although certain roles have been affected by production centralization, additional positions will be created to sustain news programming in these markets.
The CEO of Corus, John Gossling, recently highlighted the persistent challenges faced by the company, specifically citing a continued decline in linear television advertising demand. This has resulted in significant year-over-year decreases in radio and television revenue. Corus’s shares have plummeted nearly 70% over the past year, primarily due to mounting financial difficulties, with the company carrying a substantial debt load following its acquisition of Shaw Media in 2016.
In a bid to alleviate its debt burden, Corus recently received approval from the Ontario Superior Court of Justice for a debt-for-equity swap with its lenders. This arrangement involves the forgiveness of approximately $500 million in debt in exchange for majority ownership of a newly formed parent corporation. The transaction is subject to regulatory approval.
Corus estimates that this restructuring initiative could lead to annual interest cost savings of up to $40 million. These job cuts at Corus follow similar moves by industry peers such as Bell Canada and Rogers Sports & Media, which have also implemented significant workforce reductions in recent months.