LONDON (AP) — Channel 4, a major British broadcaster, is preparing for significant job cuts as it moves to prioritize streaming services due to a downturn in TV advertising. The cuts are expected to primarily affect employees based in London, according to the company’s CEO, Alex Mahon.
In an internal email to the broadcaster’s 1,200 staff, Mahon emphasized the need to accelerate the shift to digital platforms in response to the worst TV advertising slump in 15 years. He described the current market conditions as a “market shock” and acknowledged the impact it would have on jobs at Channel 4.
Mahon reaffirmed the company’s commitment to becoming a “genuinely digital-first public service broadcaster” and stated that strategic plans for the future would be unveiled later this month.
This is not the first time Channel 4 has faced such challenges. In 2008, the broadcaster had to cut nearly a quarter of its staff due to the financial crisis, although it had fewer employees at that time.
With approximately 25% of its total revenues coming from digital advertising on its streaming service, Channel 4 aims to adapt and imagine its future in an ever-changing industry. The programming commissioning and operations teams are expected to bear the brunt of the job cuts.
Channel 4, which currently employs around 1,200 full-time equivalent employees, plans to increase its workforce in the nations and regions from 500 to 600 by 2025.
Despite the challenging circumstances, the broadcaster does have significant cash reserves, including £253m. It is also considering a request to tap into a £75m credit facility.
In conclusion, Channel 4 is set to implement major job cuts in response to a sharp downturn in TV advertising, driven by the growing popularity of streaming services. The London-based staff is expected to be most affected by the cuts.