CTV plans layoffs, cuts as it braces for slump by Grant Robertson
Source : Globe & Mail
November 19, 2008
A week after its biggest rival announced layoffs, CTV Inc. is preparing to cut costs across its network by chopping discretionary expenses, imposing a hiring freeze and eliminating jobs.
It is not known how many layoffs will be made, but the move comes as the TV sector braces for one of its deepest slumps since the early 1990s as advertising revenues dry up amid an economic slowdown.
In a memo to staff yesterday, CTVglobemedia Inc. chief executive officer Ivan Fecan called the current financial situation "one of the biggest challenges" the network has faced. CTV will discuss the steps with employees today.
"We have also asked each department head to identify efficiencies - unfortunately, this will result in some layoffs," Mr. Fecan said in the memo. The extent of job cuts will depend on how much savings can be trimmed elsewhere.
The decision comes after rival CanWest Global Communications Corp. said last week that it will cut 560 jobs, including 210 at its broadcasting operations, which encompass Global, E! and several specialty channels. CanWest expects to save about $61-million a year.
Mr. Fecan said he called the meeting so employees didn't learn of the process through the rumour mill.
The cuts also come after the networks were refused by regulators in a bid to charge cable companies for their signals, which would have been worth $75-million to CTV and Global.
© Globe and Mail
It is not known how many layoffs will be made, but the move comes as the TV sector braces for one of its deepest slumps since the early 1990s as advertising revenues dry up amid an economic slowdown.
In a memo to staff yesterday, CTVglobemedia Inc. chief executive officer Ivan Fecan called the current financial situation "one of the biggest challenges" the network has faced. CTV will discuss the steps with employees today.
"We have also asked each department head to identify efficiencies - unfortunately, this will result in some layoffs," Mr. Fecan said in the memo. The extent of job cuts will depend on how much savings can be trimmed elsewhere.
The decision comes after rival CanWest Global Communications Corp. said last week that it will cut 560 jobs, including 210 at its broadcasting operations, which encompass Global, E! and several specialty channels. CanWest expects to save about $61-million a year.
Mr. Fecan said he called the meeting so employees didn't learn of the process through the rumour mill.
The cuts also come after the networks were refused by regulators in a bid to charge cable companies for their signals, which would have been worth $75-million to CTV and Global.
© Globe and Mail
