Sky has announced plans to cut approximately 1,000 jobs, representing about 4% of its UK workforce, as more customers move from traditional satellite pay-TV to internet-based services. The redundancies will primarily affect workers who install equipment in homes, with the number of installers expected to be reduced by about a quarter.
The company, which employs around 26,000 staff in the UK, estimates that roughly three-quarters of new products taken are internet-based, such as Sky Stream and Sky Glass smart TV, which do not require specialist installation. A Sky spokesman said: “The launch of Sky Glass and Sky Stream represents a shift in our business to deliver TV over IP rather than satellite. Increasingly, customers are choosing these products, and that has led us to change the number of roles we need to deliver our services.”
Sky’s announcement follows Channel 4’s confirmation of 240 job cuts, the largest since 2008, due to a slump in the TV ad market. While Sky is less reliant on advertising, it has also been affected by the economic downturn. In the final quarter of last year, Sky reported a 13% decline in revenues to $4.42bn (£3.48bn), partly due to currency fluctuations.
Sky is not alone in reducing its traditional workforce. BT plans to cut up to 55,000 jobs by 2030, and Vodafone is cutting 11,000 jobs globally by 2025. However, Sky is still recruiting in growing areas, including plans to create 2,000 jobs at its new studio complex at Elstree, announced in 2021.
