The job losses, which amount to around 800 positions, come during a turbulent year for the Toronto-based television and radio broadcaster, mired by advertising revenue declines, regulatory challenges and licensing battles.
On Monday, Corus reported a loss attributable to shareholders of $769.9 million in its latest quarter compared with a loss of $495.1 million a year earlier as its revenue fell 16%. Revenue in what was the company’s third quarter totalled $331.8 million, down from $397.3 million a year earlier.
The drop came as television revenue in the quarter sank 17% to $308.2 million compared with $371.2 million last year, while radio revenue slipped 9.9% to $23.6 million compared with $26.2 million a year earlier.
“We’re making tough decisions to shutter areas of the business we can no longer sustain and pause longer term development activities while we implement efficiency initiatives,” said co-chief executive John Gossling during a conference call with analysts.
“Our plan is to emerge as a smaller but more profitable business with a sustainable future.”
Inflation and other factors have impacted ad revenue
Corus 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 inflationary and competitive challenges.
In May, Canada’s broadcasting regulator granted the company’s request to ease some of its Canadian content spending requirements after it warned of an increasingly dire financial situation. The CRTC noted the risk of Corus exiting the Canadian broadcasting landscape “would greatly reduce the options Canadian viewers have for content.”
Then last month, the company was hit by the loss of rights to key brands like HGTV, Food Network, Cooking Channel, Magnolia Network and OWN, as of the end of this year.
