'We are decisively reducing more costs and taking actions to right-size our business given the realities of our operating environment'
Canadian media company Corus Entertainment will be letting go 300 more workers by the end of August as it faces a "challenging advertising environment”.
“As part of our mandate as co-CEOs, we are decisively reducing more costs and taking actions to right-size our business given the realities of our operating environment,” said John Gossling, co-CEO and CFO.
“We have made difficult decisions to part with certain legacy assets and are identifying additional opportunities to streamline our business with the aim of improving profitability. We are also working with the Board to develop a comprehensive plan to strengthen the balance sheet and manage liabilities.”
Gossling – in the company's third-quarter earnings call on Monday – said that by the end of August, Corus expects it will have reduced its full-time workforce by 25% – or nearly 800 jobs – compared with September 2022, reported CBC.
The company had already cut about 500 workers by the end of May, according to the report.
In fiscal 2023-2024, CBC laid off 141 employees and eliminated 205 vacant positions. In December, the employer said it was set to cut 600 jobs, eliminate 200 vacancies and cut $40 million in production costs to deal with a projected $125 million shortfall at that time, according to the CP report.
Despite laying off workers earlier this year, the board of directors for CBC and Radio-Canada recently approved bonuses for some staff for work they did in the most recent fiscal year.
Corus Media’s revenue loss
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% compared with last year to $308.2 million, while radio revenue slipped by 10% to $23.6 million, according to CBC.
The employer noted in its fiscal report that its consolidated revenue decreased 16% for the quarter and 15% for the year-to-date.
Previously, OpenText, TikTok, Indeed, Tesla, Citigroup also announced layoff plans for this year.
