Channel 4's chief executive Alex Mahon has informed the broadcaster's 1,200 staff that a round of significant job cuts is imminent, as the network accelerates its shift to digital streaming amid the worst TV advertising downturn in 15 years.
In an internal email on Monday, Mahon said the broadcaster needed to 'accelerate' plans to become a 'genuinely digital-first public service broadcaster' following the steepest decline in traditional TV advertising since the 2008 financial crisis. The cuts are expected to be the largest in over 15 years, with most likely affecting London-based workers due to a commitment to increase regional staff from 500 to 600 by 2025.
Mahon described the advertising slump in 2023 as a 'market shock', echoing ITV chief executive Carolyn McCall's assessment that free-to-air broadcasting faces its toughest period since 2008. Channel 4's programming commissioning and operations teams are expected to bear the brunt of the cuts, according to sources.
The broadcaster, which generated £1.14bn in total revenues last year with about a quarter from digital advertising, is also considering tapping a £75m credit facility in talks with the Department for Culture, Media and Sport and the Treasury, despite having £253m in cash reserves. Mahon has previously warned that Channel 4 expects losses in each of the next two years after three years of surpluses.
