Global News lays off journalists while cashing in on millions from news bailouts

Global News has axed 46 employees, primarily in Alberta and British Columbia, as parent company Corus Entertainment grapples with escalating losses and a freefalling stock value.

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Global News has axed 46 employees, primarily in Alberta and British Columbia, as parent company Corus Entertainment grapples with escalating losses and a freefalling stock value.

More than half of the layoffs, 26 of 46, were journalists, according to the Winnipeg Sun.

Unifor, which represents Corus employees, said 22 positions were cut in British Columbia, 23 in Alberta and one in the Eastern division.

“The most recent Global News layoffs are a devastating blow to local news across the country and to our democracy,” Unifor national president Lana Payne said last Thursday.

A Corus spokesperson described the cuts as part of an “efficiency review process.”

“As part of our efficiency review process across Corus, we have made some difficult but necessary changes to create a more sustainable future for the company and our News division,” said the spokesperson. “We are applying new workflows and ways of working, using the latest technology that will enable us to pave the way forward for the future of Global News. As a result, certain roles within some stations have been impacted.”

The layoffs come as Corus’ stock price is sitting at $0.095 CAD as of Monday morning.

The Canadian mass media television production company’s third-quarter earnings report highlighted that radio revenue has fallen 10 per cent while television has dropped 11 per cent. The company has posted a net loss of $51.3 million attributable to shareholders in the current fiscal year, following a loss of nearly $747 million over nine months the previous year.

“The current fiscal year costs relate primarily to restructuring costs associated with employee exits and professional fees, and a one time contract termination payment, while the prior fiscal year costs relate to restructuring costs associated with employee exits as well as system integration costs,” reads the report.

Corus’ stock price free-fall has been ongoing for a while. The peak stock price was $25.16 on March 8, 2013. By July 2024, it had fallen 99.52 per cent to 12 cents, and currently sits below 10 cents.

The losses come despite Corus receiving almost $1.8 million from Google thanks to the Liberal government’s legacy media subsidy program in May and June. In July, it received another payout of over $3.3 million.

Despite these subsidies, Corus has repeatedly cut jobs. Global News saw layoffs in February, June, July, and August 2024, along with radio station closures in Hamilton, Vancouver, and Edmonton.