Another media publisher is having to 'trim the fat' amid continued financial difficulties for the ailing media sector.

Corus Entertainment, the parent company of Global News and YTV, is “aggressively” cutting costs, shuttering operations and laying off staff amid a “challenging advertising environment.”

John Gossling, the company's co-chief executive officer, reported that Corus is expecting there will be 800 fewer jobs by September 2024 compared to September 2022, reported CBC News.

By the end of May, Corus had cut about 500 employees. Another 300 jobs are expected to be axed next month.

Corus reported revenue of $331.8 million last fiscal quarter ending May 31—down $65 million from a year earlier. “The Company may be unable to realize its assets and discharge its liabilities in the normal course of business,” it said in a filing.

TV revenues in the quarter fell 17% year over year to $308.2 million, with radio revenues down 10% to $23.6 million.

The Trudeau Liberals are drawing the ire of the Parliamentary Budget Office (PBO) over its costly bailout of government-approved media. https://t.co/u608q2cuwg

— Rebel News Canada (@RebelNews_CA) January 23, 2024

Corus expects TV advertising revenue to decline by a similar amount in the fourth quarter, from June to August, Gossling said.

The declining advertising revenue “cast significant doubt about the company’s ability to continue as a going concern.” It lost roughly $20 million in the fiscal third quarter.

Even though more restructuring efforts are in the works, company shares plunged to a record low. Corus fell 23% to close at 15.5 Canadian cents in Toronto on Monday.

Corus is reportedly in debt by $1 billion and risks losing key programming and trademark deals to rival companies next January. 

“The loss of high-margin advertising revenues remains very difficult to offset,” wrote Scotiabank analyst Maher Yaghi in a note to investors Monday. “We don’t expect trends in TV revenues to reverse in the coming months and hence we expect Corus to push further deep cuts to protect the balance sheet.”

The company is expected to cease operations for two AM radio stations in Vancouver and Edmonton in the coming months. “We can and will do much more,” Gossling said.

Declining revenues leads to media layoffs

The company's financial troubles follow broader trends in the sector, forcing thousands of media professionals into unemployment.

Bell Media axed 1,300 media jobs last June to “significantly adapt” its news delivery methods. Other companies have cut hundreds more jobs since then.

Nordstar, the parent company for Toronto Star and other newspapers, announced 600 job cuts last September. It sought bankruptcy protection for its Metroland division, which owns and operates more than 70 local newspapers.

Metroland cites changing advertiser and consumer preferences for the corporate restructuring.

CBC/Radio-Canada threatened another 800 job cuts last December, but additional funding kept job losses to 141 employees and 205 vacant positions. 

Isn't that convenient?

The media bailout that was to end before the next election has been extended to well beyond the next election.

Trudeau needs his mainstream media enablers polishing his turds like their jobs depend on it.

Because they do. https://t.co/TyWD0xWPOE

— Sheila Gunn Reid (@SheilaGunnReid) November 23, 2023

The bailout money was initially set to expire on March 31, 2024, but later doubled. It will now expire in 2027.

Annual subsidies paid to cabinet-approved newsrooms are currently worth up to $29,750 per employee.

A February 19 submission to the Commons Heritage Committee opposed the ongoing $595 million bailout as wasteful, corrupting and futile.

MPs on the Commons Heritage Committee heard on February 27 that more handouts only perpetuate media failure.

Poilievre pledges ‘no more bailouts’ if elected prime minister

Conservative leader Pierre Poilievre earlier told reporters that media should be driven by readership, viewership and listenership. “That is what allows it to represent the Canadian people rather than taking marching orders from the Prime Minister’s Office,” he said.

“Our Party does not support tax dollars for media outlets.”

Millions in subsidies originally justified in the name of job creation had not saved media jobs, he claimed. A Department of Canadian Heritage memo confirmed handouts would not save the ailing sector.

“At least one-third of Canadian journalism jobs have disappeared since 2010,” said the memo, The Online News Act.

Pierre Poilievre shuts down a reporter from The Canadian Press over media bailouts.

"You're a tax-funded mouthpiece to the PMO," he says. "Are you going to let me answer the question or are you just going to heckle on behalf of Justin Trudeau?"https://t.co/IRDTKvQkdt pic.twitter.com/SHqdIZbu4f

— Rebel News Canada (@RebelNews_CA) February 12, 2024

“Between 2008 and February 1, 2023, a total of 470 local news operations closed in 335 communities across Canada. Between the same period 210 new news outlets launched,” it said.

Poilievre took the Media Party to task on February 12 after calling out reporters who are “bought and paid” for by the Trudeau government.

“We don’t want to give any tax dollars to the mainstream media,” Poilievre told reporters. He pledged to end all media bailouts if elected prime minister.