Corus Entertainment is undergoing more layoffs, as well as ceasing operations for its OWN specialty channel and two AM radio studios, as part of recent cost reduction efforts.
Co-CEO John Gossling told investors in a call regarding Corus’s Q3 financial results this morning that the company will see nearly 800 full-time positions cut by the end of its Q4 in August, which represent 25% of its workforce. About 500 positions have already been eliminated, with roughly 300 more to end in the next seven weeks.
Additionally, Corus will cease operations for two AM radio stations: 880 News Edmonton and AM 730 Vancouver Vancouver, as well as the specialty channel OWN as of Sept. 1.
The cuts are part of a cost efficiency plan to right-size the business, with Corus also pursuing avenues to relieve some of its $1.06 billion in outstanding debt.
“Our plan is to emerge as a smaller, but more profitable business with a sustainable future,” said Gossling.
Corus has been forced to pivot its programming strategy after Warner Bros. Discovery (WBD) ended its programming and trademark agreements for the channel brands HGTV, Food Network, Cooking Channel, Magnolia Network and OWN as of Dec. 31. The rights were then sold to Rogers Communications as of Jan. 1, 2025, which similarly picked up rights to Discovery channels, currently held by Bell Media.
Co-CEO Troy Reeb told investors that Corus is actively exploring legal and regulatory avenues regarding the situation, but fell short of confirming if they would pursue Bell Media’s course of action to seek an injunction on the launch of the new Discovery channels.
He also confirmed that the company is planning to launch new home and culinary lifestyle channel brands, which will include its original Canadian content and other licensed programming. Reeb said the program supply will include Extreme Makeover: Home Edition and that Corus is in talks to expand its relationships with two existing studio partners.
Corus reported a 16% decrease in consolidated revenue for Q3, falling to $331.8 million from $397.3 million in Q3 2023. The loss is attributed to lower advertising demand, as well as reduced subscriber and content revenue.
Year-to-date consolidated revenue came to $1 billion, down 15% compared to $1.2 billion in the first nine months of fiscal 2023.
Corus saw revenue losses across TV and radio in Q3, with a 17% decrease in TV revenue year-over-year at $308.2 million compared to $371.2 million in fiscal 2023, and a 10% decrease in radio, coming to $23.6 million from $26.2 million in the prior Q3.
