Corus to centralize Calgary, Edmonton productions of Global News, some jobs to be cut

Corus to centralize Calgary, Edmonton productions of Global News, some jobs to be cut

TORONTO — Corus Entertainment Inc. says it will centralize some production of its Global News broadcasts for Alberta while cutting an undisclosed number of roles.

The Toronto-based company said the move is part of programming changes across the country that are meant to improve efficiency and allow it to continue producing journalism.

Corus spokesperson Annie Arnone said that while some jobs would be affected, the broadcaster is also adding roles to continue providing news programming in the Calgary and Edmonton markets.

"Corus is committed to local news and will maintain its local news delivery in Calgary and Edmonton," she said in an emailed statement.

"As a result of these changes, we have had to say goodbye to some of our Global News personalities. We greatly appreciate their time with us and wish them the best in their future endeavours."

When asked, Arnone did not confirm if production of Global News' Calgary and Edmonton broadcasts would take place from Toronto.

She said changes will be reflected on air in the coming weeks but that Corus would not comment on any specific individuals affected.

The moves come amid significant financial struggles for Corus, which last month reported a net loss attributable to shareholders of $36.5 million in its third quarter, as its revenue for the period fell 16 per cent compared with a year earlier.

Corus is also awaiting approval of its proposed recapitalization plan that would see a change in ownership shifting effective control of all licensed programming services operated by the company and its subsidiaries.

Under the proposal, some of Corus' lenders would forgive approximately $500 million in debt in exchange for 99 per cent ownership of a newly created parent corporation, called NewCo, that would wholly own Corus and its services. Existing Corus shareholders would be expected to swap their holdings for shares that together would represent the remaining one per cent of the new company.

Corus has indicated to the CRTC that the proposed deal is necessary to address its high debt load and improve its financial stability so it can continue to operate.

Its board has said the deal represents the "best viable option to secure Corus' future while preserving the most shareholder value." The company has said it will lead to annual cash interest savings of up to $40 million and preserve Corus "in its vital role as a leading independent Canadian broadcaster."

Corus sought court approval for the proposal after a shareholder vote in January failed to pass. In March, Corus received an order from the Ontario Superior Court to proceed, but still awaits the regulator's decision.