Corus Layoffs: Aggressive Cuts Amid Revenue Decline
What is the reason for Corus Entertainment layoffs?
Canadian media giant Corus Entertainment, known for its brands like Global News and YTV, is taking drastic steps to cut costs and address a significant revenue slump brought on by a “challenging advertising environment.” The company has announced aggressive measures, including layoffs and the closure of some business operations.
What Are the Specific Business Closures?
In a recent third-quarter earnings call, co-chief executive officer John Gossling revealed that Corus aims to reduce its full-time workforce by 25% by the end of August, equating to nearly 800 jobs. By the end of May, approximately 500 employees had already been laid off. Additionally, the company plans to cease operations at two AM radio stations located in Vancouver and Edmonton. Gossling emphasized that more cost-saving opportunities have been identified and will be pursued.
How Did Corus Perform Financially?
For the period from March to May, Corus reported revenue of $331.8 million, marking a decline of over $65 million compared to the same quarter last year. Television revenue dropped by 17% to $308.2 million, and radio revenue decreased by 10% to $23.6 million. These declines mirror broader trends affecting the media industry.
Where Is Corus Focusing Its Restructuring Efforts?
Co-chief executive officer Troy Reeb highlighted the difficulties facing local news, particularly in smaller markets. He noted that local television stations, once dominant among local advertisers, now face competition from numerous other advertising options. This competition has necessitated the focus of Corus’s restructuring efforts on these smaller markets. Despite these challenges, Reeb pointed out that Corus’s national news operations, especially in digital formats, continue to perform well and drive growth.
What Are Corus’s Future Projections?
Looking ahead, Gossling indicated that Corus anticipates a continued decline in TV advertising revenue for the fourth quarter, spanning June to August. The company attributes this ongoing slump to several factors, including the residual effects of the 2023 Hollywood strikes, which delayed key programming, as well as inflation and increased competition.
Severance Pay for Corus Entertainment Employees
In Canada, Corus Entertainment employees who are non-unionized and face job loss due to downsizing or corporate restructuring are eligible for full severance pay. This severance package can extend up to 24 months, depending on various factors. Employees who do not receive their full severance have the right to seek compensation and are encouraged to consult legal professionals to ensure fair treatment.
At Whitten & Lublin, our employment lawyers are committed to helping individuals understand their legal options and secure rightful compensation. If you have been affected by recent layoffs at Corus, contact us for a consultation via our online portal or by phone at (416) 640 2667.