CTV cuts 105 positions by Richard Blackwell
Source : Globe & Mail
Broadcaster tightens belt amid softening ad market
November 28, 2008
CTV, which said 10 days ago it was going to trim costs because of financial pressures, eliminated 105 jobs yesterday at its broadcast operations.
The television and radio broadcaster, like many other media organizations in Canada and around the world, has been hit by softening advertising in the face of a weak economy.
While the majority of the CTV job cuts were in the properties it bought from CHUM Ltd. last year - MuchMusic, MuchMoreMusic and MTV Canada - other positions were eliminated in its news, communications and public affairs groups, at the specialty channel Star!, and among the staff of the entertainment news program ETalk.
Several on-air hosts were laid off, including CTV Newsnet anchor Kate Wheeler.
CTV spokeswoman Bonnie Brownlee said many of the cuts in the former CHUM group had been planned some time ago, as that division is in the process of being reorganized after the 2007 takeover.
Ms. Brownlee said "there will be no more cuts this year" at CTV, although she would not make that commitment beyond the end of December.
Virtually all the job cuts were in the network's Toronto operations.
CTV is an arm of CTVglobemedia Inc., which is owned 40 per cent by Woodbridge Co. Ltd., the Thomson family's private holding company, 25 per cent by the Ontario Teachers' Pension Plan, 20 per cent by Torstar Corp. and 15 per cent by BCE Inc.
When CTVglobemedia chief executive officer Ivan Fecan addressed employees in a town hall last week, he said that in addition to the job cuts there will also be a freeze on travel, entertainment spending and new hiring.
Yesterday, Phillip Crawley, publisher of The Globe and Mail - another CTVglobemedia property - told staff that an indefinite hiring freeze is now in effect at the media organization, and further efforts will be made to cut costs. Capital spending, travel and entertainment expenses will be trimmed, along with marketing and freelance costs. Some contract employees and consultants will be let go, he said.
Mr. Crawley would not rule out possible layoffs in the future, but said that would be a last resort.
Other media organizations have made even deeper cuts than CTV.
Two weeks ago, CanWest Global Communications Corp. said it will eliminate 560 jobs, including 210 at its broadcasting operations. That move is expected to save about $61-million a year.
CTV's network of local television stations across the country was spared any cuts, at least for the time being. However, the future of conventional local programming at all networks is up in the air after the CRTC's recent ruling that television broadcasters cannot charge cable and satellite companies for carrying their signals.
That could prompt a rethink of how the networks organize their conventional programming, and thus affect staffing levels at local stations.
Peter Murdoch, vice-president of media for the Communications, Energy and Paperworkers Union, said it is no surprise media companies are being affected by the weakening economy.
With advertisers - including such heavyweights as the automotive companies - in serious trouble and cutting their spending, "I wouldn't be surprised to see some more [cost cutting] by the media in response to that," he said.
The union said it believes CTV should be promising to rehire the laid-off employees when the economy has recovered.
© Globe and Mail
The television and radio broadcaster, like many other media organizations in Canada and around the world, has been hit by softening advertising in the face of a weak economy.
While the majority of the CTV job cuts were in the properties it bought from CHUM Ltd. last year - MuchMusic, MuchMoreMusic and MTV Canada - other positions were eliminated in its news, communications and public affairs groups, at the specialty channel Star!, and among the staff of the entertainment news program ETalk.
Several on-air hosts were laid off, including CTV Newsnet anchor Kate Wheeler.
CTV spokeswoman Bonnie Brownlee said many of the cuts in the former CHUM group had been planned some time ago, as that division is in the process of being reorganized after the 2007 takeover.
Ms. Brownlee said "there will be no more cuts this year" at CTV, although she would not make that commitment beyond the end of December.
Virtually all the job cuts were in the network's Toronto operations.
CTV is an arm of CTVglobemedia Inc., which is owned 40 per cent by Woodbridge Co. Ltd., the Thomson family's private holding company, 25 per cent by the Ontario Teachers' Pension Plan, 20 per cent by Torstar Corp. and 15 per cent by BCE Inc.
When CTVglobemedia chief executive officer Ivan Fecan addressed employees in a town hall last week, he said that in addition to the job cuts there will also be a freeze on travel, entertainment spending and new hiring.
Yesterday, Phillip Crawley, publisher of The Globe and Mail - another CTVglobemedia property - told staff that an indefinite hiring freeze is now in effect at the media organization, and further efforts will be made to cut costs. Capital spending, travel and entertainment expenses will be trimmed, along with marketing and freelance costs. Some contract employees and consultants will be let go, he said.
Mr. Crawley would not rule out possible layoffs in the future, but said that would be a last resort.
Other media organizations have made even deeper cuts than CTV.
Two weeks ago, CanWest Global Communications Corp. said it will eliminate 560 jobs, including 210 at its broadcasting operations. That move is expected to save about $61-million a year.
CTV's network of local television stations across the country was spared any cuts, at least for the time being. However, the future of conventional local programming at all networks is up in the air after the CRTC's recent ruling that television broadcasters cannot charge cable and satellite companies for carrying their signals.
That could prompt a rethink of how the networks organize their conventional programming, and thus affect staffing levels at local stations.
Peter Murdoch, vice-president of media for the Communications, Energy and Paperworkers Union, said it is no surprise media companies are being affected by the weakening economy.
With advertisers - including such heavyweights as the automotive companies - in serious trouble and cutting their spending, "I wouldn't be surprised to see some more [cost cutting] by the media in response to that," he said.
The union said it believes CTV should be promising to rehire the laid-off employees when the economy has recovered.
© Globe and Mail
