http://www.cbc.ca/money/story/2009/03/25/cbc-layoffs.html
CBC to cut up to 800 jobs, sell assets
Last Updated: Wednesday, March 25, 2009 | 2:43 PM ET
The Canadian Broadcasting Corp. plans to cut up to 800 jobs as part of its
strategy to make up for a $171 million shortfall in 2009-10.
CBC president and chief executive Hubert Lacroix announced the layoffs
Wednesday in a broadcast to employees.
He said the public broadcaster also needs to sell $125 million worth of
assets to make up the shortfall.
The sale of assets depends on approval by the federal government. Lacroix
did not say which assets would be sold.
The CBC is projecting 393 layoffs in its English services - including
radio, TV and new media platforms - and 336 layoffs in French services. An
additional 70 jobs will be lost at the corporate level.
Layoffs could start in May. The full number of layoffs could be reduced if
some employees opt for retirement.
The public broadcaster will announce more specifics of cuts to individual
departments in meetings with employees throughout the country on Thursday.
"For senior executives, coming up with a plan to get out of this mess has
been as tough a task as most of us have faced. It's not been fun," Lacroix
said.
The cuts became necessary after the federal government turned down CBC's
request for bridge financing that could have helped the public broadcaster
weather the economic recession, Lacroix said.
Lacroix said CBC would not change some key areas, including:
* Radio One and Radio 2 will remain free of ads.
* CBC TV will maintain its commitment to 80 per cent Canadian content
in primetime.
* CBC will continue to invest in new media platforms.
* Regional stations will not be closed.
However, he warned CBC would be forced to make "many difficult choices"
regarding programming.
Richard Stursberg, executive vice-president of English services, told
employees CBC's English service has already cut $50 million from
programming.
A total of $85 million will have to be cut, he said, about $14.4 million
from radio and $70.3 million from television.
This will result in layoffs and could also lead to more repeat
programming, Stursberg said.
He said job cuts would fall disproportionately on national English
television because of CBC's commitment to continue building its regional
TV service.
The CBC has already committed to freezing executive salaries.
Opposition leader Michael Ignatieff questioned the prime minister about
the cuts during question period on Wednesday.
"Even the private broadcasters understand the importance of a public
broadcaster, so the question is what is the government prepared to do now
to ensure that this national institution survives this recession?"
Ignatieff said. "Is the government prepared to extend refundable bridge
loans to the CBC to keep it alive until advertising revenues return?"
Prime Minister Stephen Harper said the CBC has already received "an
unprecedented amount of funding."
"You will know the House has just passed a budget and that budget provides
the CBC with record financing, financing in the order of $1.1 billion, Mr.
Speaker," Harper said.
"Broadcasters, both public and private, are having difficulties and it's a
terrible thing when someone loses their job and we will obviously monitor
these decisions of the board very carefully to make sure they respect
CBC's mandate and treat their employees fairly," he said.
The Canadian Media Guild, which represents most CBC employees, lashed out
at the federal government for the cuts.
"I blame the loss of 800 jobs squarely on the Conservative government,"
union president Lise Lareau said.
"This was an entirely avoidable layoff. The Harper government forced the
CBC to make these choices over a relatively small amount of money."
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