Rogers Media has today announced plans to cut its workforce by 4% (200 jobs) across its television, radio, and publishing divisions, reports Christine Dobby for the Globe and Mail. The job cuts will begin next month and “conclude as soon as possible,” the emailed statements reads.
The announcement comes at a time when Rogers is preparing to announce its fourth-quarter earnings. Interestingly, when you look back at the previous three quarters’ earnings, Rogers Media’s revenue has been growing.
Quote from Q1 2015 earnings report; Media revenue up 26%: “Consolidated revenue increased 5% this quarter, reflecting revenue growth of 4% in Wireless, 1% in Cable, and 26% in Media […] Media revenue increased as a result of the NHL licensing agreement and growth at Sportsnet, Radio, and Next Issue Canada partially offset by continued softness in conventional broadcast TV and print advertising.”
Here is what Rogers reported for Q2 2015; revenue up 23%: “Consolidated revenue increased 6% this quarter, reflecting revenue growth of 6% in Wireless and 23% in Media […] Media revenue increased as a result of the NHL licensing agreement together with growth at Sportsnet, the Toronto Blue Jays, and Next Issue Canada, partially offset by continued softness in conventional broadcast TV and print advertising.”
In Q3 2015, however, revenue increased “only” 8%: “Consolidated revenue increased 4% this quarter reflecting revenue growth of 5% in Wireless, 1% in Cable, and 8% in Media […] Media revenue increased primarily as a result of growth at Sportsnet and the Toronto Blue Jays.”
Now Rogers says it is observing a shift in consumption habits, so to cut costs it has identified cost-saving solutions in production, operation, and procurement and “made the difficult decision to reduce head count.”
The layoffs will mainly affect Rogers’ conventional television, radio, and publishing operations, and back-office roles, according to an emailed statement from a company spokeswoman. She added in a separate email that “today’s announcement impacts all areas of Rogers Media except for the Toronto Blue Jays.”