Bell, a subsidiary of BCE Inc, has revealed plans to cut 1,300 jobs, close six radio stations, and sell three others
Canadian media and telecom company Bell, a subsidiary of BCE Inc (BCE.TO), has revealed plans to cut 1,300 jobs, close six radio stations, and sell three others. These measures are being taken due to diminishing revenues in the company's legacy phone and news businesses. The layoffs will primarily affect management positions and come as the media industry grapples with challenges such as reduced ad spending, inflation, and the ongoing transition from cable TV to streaming.
Bell Canada, a subsidiary of BCE Inc, anticipates an annual decline of $250 million in legacy phone revenue. Additionally, the news operation is expected to record annual operating losses of $40 million. As a result, the company has made the difficult decision to lay off 1,300 employees, primarily impacting management roles. This move aligns with the broader trend in the media industry, which has witnessed numerous job cuts due to financial challenges and shifting consumer preferences.
In an internal memo seen by Reuters, senior executive Wade Oosterman acknowledged the major disruption experienced by the industry. He attributed part of the company's struggles to a challenging regulatory environment that has been slow to adapt. The Canadian telecom sector has faced pressure from the government to lower phone bills in a concentrated market. Furthermore, proposed legislation aimed at compelling internet giants like Google and Facebook to pay news publishers for content has encountered obstacles, including limiting users' access to news content.
As part of the restructuring, Bell will close the CTV television network's bureaus in London and Los Angeles and reduce its presence in Washington. These measures will streamline operations and help mitigate financial losses. However, the closures have drawn criticism, with Canadian Finance Minister Chrystia Freeland expressing disappointment over the loss of experienced and talented journalists relied upon by Canadians.
Bell has stated that affected employees will be notified this week. The company also emphasized that vacant positions were eliminated to minimize the impact on existing teams. However, Lana Payne, the national president of the Unifor trade union, voiced concerns about the layoffs and suggested that Bell had alternative choices it could have explored. Payne further emphasized the urgency for government intervention to protect Canadian journalism.
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