Channel 4 plans to slash around 200 positions in its most extensive job cuts in over 15 years.
The cuts come as a response to the major decline in TV advertising—the steepest downturn since the 2008 financial crisis.
The broadcast experienced substantial growth, expanding its staff to a record 1,200.
However, it is now aiming to trim its annual wage bill, which is more than £108 million.
The restructuring, initiated late last year, prioritises its digital streaming strategy to mitigate extensive reductions in its £700 million-plus content budget.
A company spokesperson said: “Like every organisation, we are having to deal with an extremely uncertain economy in the short term and the need to accelerate our transformation to become a wholly digital public service broadcaster in the long term.
“As a result, we need to continue to divest from our linear channels business and simplify our operations to become a leaner organisation.”
The proposed job cuts are not expected to reach the same percentage as those made during the 2008 financial crisis.
However, they pose a considerable impact given the current higher headcount.
The restructuring would place considerable pressure on London-based staff.
But Channel 4 has promised to expand its employee numbers in the “nations and regions” to 600 by 2025.
The broadcaster pledged this expansion in its 2022 manifesto, “The Next Episode,” to counter privatisation plans.
The channel has already taken measures to reduce its programming budget, which reached a record £713 million in 2022.
Several shows were canceled or paused, including Steph’s Packed Lunch, SAS: Who Dares Wins, and The Big Narstie Show.
Need Career Advice? Get employment skills advice at all levels of your career
CEO Alex Mahon highlighted the severity of the TV ad market during a parliamentary committee session in November.
Two years of losses
She noted that the channel expected to make losses in the next two years after three years of surpluses.
To navigate the economic challenges, Channel 4 is also considering accessing a £75 million credit facility, though it currently holds £253 million in reserve cash.
The broadcaster remains vulnerable to the decline in traditional TV advertising, which constituted two-thirds of its £1.14 billion in total revenues in 2022.
Despite the robust growth of its streaming service, accounting for 25 percent of total income in 2023, digital ad revenues are not expanding rapidly enough to offset the decline in traditional TV advertising.
Channel 4’s management is developing a new plan beyond the current strategy, extending to the end of 2025 to future-proof the business.
