Channel 4 Headquarters
Courtesy of Channel 4
81st Golden Globe Awards
UK broadcaster Channel 4 is finalizing plans to cut 200 jobs, or about 17 percent of its workforce, amid advertising cuts.
Up to 200 of its estimated more than 1,200 employees could be affected as the broadcaster reins in content cuts and focuses more on its streaming strategy. Guardian reported. It said management was carrying out what would be Channel 4's biggest layoffs in more than 15 years in terms of the overall population affected. During the 2008 financial crisis, it had to lay off 200 people, nearly a quarter of its workforce at the time.
The news comes amid ongoing advertising market challenges for UK TV companies. In November, Channel 4 CEO Alex Mahon told a parliamentary committee that the state of the advertising market was „in shock”, predicting the broadcaster would post losses in the next two years after three years of profits. Similarly, ITV was „mindful of macroeconomic and geopolitical uncertainty,” ITV CEO Caroline McCall said at the time.
„What we are doing now is accelerating our current plans to counter the sharp and prolonged advertising recession that has hit the entire industry,” Mahon said in a staff memo Monday. Guardian.
„Like every company, we have to deal with a very uncertain economy in the short term and the need to accelerate our transition to becoming a fully digital public service broadcaster in the long term,” a Channel 4 representative said in a statement on Monday. . „As a result, we must continue to divest from our linear channels business and simplify our operations to become a leaner organization.”
While details are still being worked out, the broadcaster plans to „share additional details with our employees, partners and shareholders soon.” „While organizational change is not without personal impact, it is a necessary response to stand out and succeed in a world of global entertainment conglomerates and social media giants.”