Channel 4 will sell its London headquarters due to the expected deep cuts in staff, especially those based in London. This has led to the search for smaller and more affordable premises.
The broadcaster will move to a smaller office in central London within the next few year as it plans to relocate most of its employees outside London.
Channel 4 confirmed that it plans to cut staff numbers to 240. This is the biggest round of layoffs Channel 4 has experienced in over 15 years. The move to streaming coincides with the worst slump in TV advertising in 2008.
reported three weeks ago that the broadcaster, who employs over 1,200 people, intended to reduce 200 jobs.
Channel 4 said it would also Close 40 unfilled positions, making an 18% reduction to the headcount. This comes after the broadcaster underwent a rapid expansion, which included staff numbers reaching record levels.
The latest restructuring is likely to Leeds is the broadcaster’s national headquarters.
The broadcaster announced that it would find an office in central London suitable for its needs, with 600 jobs based outside London. It also said there will be a reduction in the number of people working in London.
These cuts are part of the Fast Forward strategy, a five-year plan that will shift Channel 4’s dependence on traditional TV ads to digital revenue streams.
Alex Mahon is the CEO of Channel 4. He said, “As our focus shifts from linear to digital our proposals will concentrate cost reductions on legacy activities. It does involve making difficult decisions. “I am saddened that some of our wonderful colleagues will lose their job because of the changes to come.”
The broadcaster stated that about 70% of unfilled positions it is closing come from its legacy operation, and the overall cut programme will return the number to employees near 2021 levels.
Channel 4 stated that it would “divest legacy operations to support the digital priorities” as well as create a “leaner and simpler business” to ensure “long-term viability” of the broadcaster.
The company said it would shut down “small linear channels”, which no longer provided “revenues and public value on a large scale”, beginning with Box TV this year.
Two-thirds (£1.14bn) of Channel 4’s total revenues in 2022 will come from traditional TV advertising. The broadcaster stated on Monday that it aimed to achieve a “tipping-point” by 2030, with at least half of its total revenues coming through digital sources.
Mahon announced a plan to diversify the company, including owning and exploitation of Channel 4 shows, creating e-commerce businesses worth “double-digit millions” per year by 2030, and doubling its membership of Channel4+ (ad-free streaming service that costs £3.99/month) by the end the decade.
Mahon stated that Channel 4 is always ahead of the curve. The rate of change on our market has only accelerated. “Our new strategy will accelerate digital transformation.”
Mahon said last year that the state the TV advertising market was was so bad that it was “shock terrain”. After three years of surpluses, the broadcaster was expecting to make losses each of the following two years.