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Sky confirms 1,000 job losses as customer preferences shift

By Nithya Bose in Business News, posted January 31, 2024

British media giant Sky is set to shed 1,000 jobs, about four percent of its 26,000 UK employees.

This move is a response to the shifting consumer preferences from traditional satellite pay-TV towards internet-based streaming services.

The job cuts will predominantly affect Sky's installation staff, with an expected reduction of about a quarter in this sector.

Customers opt for plug-and-go products like Sky Stream and the Sky Glass smart TV, which require less specialised installation.

This decision comes during a broader trend of workforce reductions in the UK media industry.

Channel 4 recently announced a significant reduction of 240 staff members, the largest since 2008.

The company adapts to the declining TV advertising market and shifts its focus to digital broadcasting.

Similarly, ITV is expected to reveal job cuts shortly.

Sky's need to restructure is not solely driven by changing consumer habits but also by broader economic challenges.

In 2018, Comcast, a US media conglomerate, acquired Sky (including its operations in Germany and Italy) for £32 billion.

Installation staff to be let go

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However, the value of Sky was written down by $8.6 billion by Comcast two years ago, reflecting concerns over the economic outlook and the impact of the cost of living crisis on consumer spending.

A spokesman said: “The launch of Sky Glass and Sky Stream represents a shift in our business to deliver TV over IP [an internet connection] rather than satellite.

“Increasingly, customers are choosing Sky Glass and Sky Stream which don’t require specialist installation, and that has led us to change the number of roles we need to deliver our services.”

Sky is still recruiting in other areas of its business.

In 2021, the firm said it’d create 2,000 new jobs at its new studio complex at Elstree.

Other media and telecom companies are also resising their workforce.

BT announced plans to cut its global staff by up to 55,000 by 2030, a reduction of over 40 percent, as it completes the rollout of full-fibre broadband and 5G networks.

Vodafone also plans to reduce its global workforce by 11,000 jobs by 2025, marking its largest round of cuts.

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