Falling advertising revenue has forced Rogers Media to adapt to changes in the media industry. The restructuring, however, comes with a price for the media workforce: Layoff notices have been handed out to 94 employees, the Globe and Mail reports.
Rogers Communication’s media division includes some of the largest magazines in Canada, the City and Omni television networks, 55 radio stations, and channels such as Sportsnet and FX Canada.
“Today we made changes to our business that will allow us to continue to make investments in our priority brands and strategic growth initiatives, and better position us for the future… Decisions like these are never easy, but are necessary,” president Keith Pelley wrote in a memo to employees.
Earlier this year, another 62 workers lost their jobs at Rogers Media when the company decided to stop its CityNews television channel.
“We’ve seen a slight overall improvement in the advertising market and are cautiously optimistic,” chief financial officer Anthony Staffieri said in a conference call late last month. “There’s no doubt there has been a systematic shift in how advertising dollars are allocated, underscoring the importance of a growing subscription revenues and continued investments in our digital platforms.”
While the publishing division has been struggling to obtain ad dollars, going digital seems to be the direction Rogers will take. It launched a digital subscription service, which packs Rogers’ titles and high-profile American offerings under the name of Next Issue Canada, last month.
It has to be noted that the layoffs come as Rogers Communication makes preparations to welcome a new CEO, Guy Laurence, who will take over for Nadir Mohamed as early as next month.