Corus Entertainment, the parent company of Global Television Network and several radio stations, is set to implement programming changes nationwide, leading to the elimination of numerous positions. The decision comes as Corus faces ongoing challenges with declining advertising revenues and escalating debt levels.
According to Unifor, the union representing numerous media professionals, including those at Corus, a total of 43 jobs will be lost due to the restructuring. Unifor’s national president Lana Payne expressed concerns over the impact of these changes on local news coverage, particularly in Western Canada.
The breakdown of job cuts by region is as follows: 28 positions in Alberta, 2 in British Columbia, 5 in Winnipeg, 2 in Saskatoon, 3 in the Maritimes, and 3 in Ontario. Corus, in an internal memo obtained by CBC News, emphasized the necessity of these changes to ensure the sustainability of its operations and enhance operational flexibility.
Although some production activities for Global News broadcasts in Alberta will be centralized under the new plan, Corus affirms its commitment to continue producing local news content in provincial studios. Additionally, the company plans to introduce an undisclosed number of new positions to support local news delivery.
Scott Roberts, co-anchor of Global Edmonton’s 6 p.m. newscast, took to Instagram to announce his departure following significant cutbacks in local news coverage at Corus. The changes at Corus were initially disclosed by the Western Standard news website.
Amidst a challenging financial landscape, Corus CEO John Gossling attributed the company’s recent revenue declines to persistent pressures on traditional television advertising demand. Corus shares have plummeted nearly 70% in the past year, reflecting the company’s financial struggles, including its substantial debt load stemming from the acquisition of Shaw Media in 2016.
In an effort to alleviate its debt burden, Corus recently received court approval for a debt-for-equity swap with its lenders, aimed at restructuring its financial obligations. The proposed transaction involves the creation of a new parent corporation, NewCo, in which lenders would hold a 99% ownership stake in exchange for forgiving a portion of Corus’ debt.
Corus estimates that this restructuring initiative could lead to annual interest cost savings of up to $40 million. These layoffs follow similar job cuts at industry peers such as Bell Canada and Rogers Sports & Media, underlining the challenging environment faced by media companies in the current landscape.