Corus Entertainment ‘aggressively’ cutting costs, laying off more employees as revenue slumps

As income slumps from a “difficult promoting surroundings,” Canadian media firm Corus Leisure — which homes manufacturers like International Information and YTV — is “aggressively” chopping prices, persevering with layoffs and shutting down elements of its enterprise.

Within the firm’s third-quarter earnings name on Monday, co-chief government officer John Gossling stated that by the top of August, Corus expects it is going to have decreased its full-time workforce by 25 per cent — or practically 800 jobs — in contrast with September 2022. By the top of Might, Corus had lower about 500 workers.

The corporate may even cease working two AM radio stations in Vancouver and Edmonton, and Gossling stated it has recognized extra alternatives for financial savings sooner or later. “We will and can do rather more,” he stated.

Corus reported $331.8 million in income from March to Might, a lower of greater than $65 million from the identical interval final yr.

That drop got here as tv income within the quarter fell by 17 per cent in contrast with final yr to $308.2 million, whereas radio income slipped by 10 per cent to $23.6 million.

The corporate’s monetary troubles are following broader traits within the media trade.

In February, Bell Media lower a number of tv newscasts. This got here after mum or dad firm BCE Inc. introduced it was eliminating 4,800 jobs in its largest spherical of layoffs in practically three many years and promoting 45 of its 103 regional radio stations.

In the meantime, Nordstar, the corporate that owns the Toronto Star and different newspapers, introduced in September 2023 that it was chopping 600 jobs and searching for chapter safety for its Metroland division, which owns greater than 70 native newspapers.

On the time, Metroland stated the rationale for the choice was unsustainable monetary losses because of altering advertiser and client preferences.

And in April, executives at CBC/Radio-Canada stated vital job cuts had been now not wanted after a one-year enhance in federal price range funding.

Final fall, the general public broadcaster introduced plans to chop 10 per cent of its workforce — or about 800 jobs — and slash $40 million from its manufacturing price range after forecasting $125 million in monetary pressures for the 2024-25 fiscal yr.

Previous to the funding enhance, CBC/Radio-Canada had already laid off 141 workers and lower 205 vacant positions. 

Throughout Monday’s earnings name, Corus co-chief government officer Troy Reeb stated native information, significantly in small markets, is difficult.

“There was a time when a neighborhood tv station may have … an excellent maintain on the native advertisers out there,” Reeb stated. “Now native advertisers can go to actually a whole bunch of different choices.”

He stated small markets are “the place the main focus of our restructuring efforts have been and can proceed to be.”

Nonetheless, Reeb additionally stated that Corus’s nationwide information operations carry out “fairly properly” and are one of many firm’s drivers of development, significantly in digital areas.

Corus expects TV promoting income to say no by the same quantity within the fourth quarter, from June to August, Gossling stated.

The corporate has attributed the promoting hunch this yr partly to lingering results from the 2023 Hollywood strikes that delayed manufacturing of key programming, together with inflation and challenges from competitors.