Channel 4 expected to announce 200 job cuts

Channel 4, the advertising-funded UK public broadcaster, is expected to announced 200 job cuts today as it adjusts to a sharp decline in advertising, with a further 50 roles to be axed.

The redundances, news of which was first reported by Sky News, amount to about 15% of the company’s workforce.

Job losses at the broadcaster had been expected, with CEO Alex Mahon informing staff earlier this month that there would be an impact on jobs from the deterioration in market conditions. The broadcaster has slashed its programming spend following a big increase last year.

The Guardian had reported that Channel 4 was seeking to reduce its wage bill by £108 million a year.

The job cuts are likely to fall heaviest on London-based staff, as the broadcaster has committed to increasing the numbers employed elsewhere in the country by 500-600 by next year.

In November, Mahon told a UK parliamentary committee that the broadcaster would hit deficit because it expected revenues to drop by 8-9% during the year amid a shrinking linear ad market.

Mahon said that the industry was facing “market shock” conditions with a recession in advertising deeper than that of 2008, meaning that it could, over next year, make use of a £75 million credit facility set aside for such conditions.

Mahon said that Channel 4 would be in a process of licence renewal next year and would update on shifts in future strategy at that time.

She said that Channel 4 had chosen to spend a record amount on content last year, reducing its surplus, but that this had followed three years of financial surplus.