TVA Group, a Montreal-based broadcasting company, has revealed plans to implement significant workforce reductions as it undergoes a restructure of its operations. The company will cut 547 positions in total, representing a staggering 31% of its workforce.
Adapting to Changing Landscape and Revenue Challenges
TVA Group has deemed these organizational changes necessary due to several factors impacting its industry. One such factor is the rapid shift towards streaming platforms, resulting in a decline in traditional subscriptions and advertising revenue. In response to these challenges, the company has made the difficult decision to cease all in-house entertainment production.
Outsourcing Entertainment Programming
As part of its restructuring efforts, TVA Group will now outsource its entertainment programming to external producers. By doing so, the company aims to optimize its resources and streamline operations.
Consolidation of News Teams
To further enhance efficiency, TVA Group plans to consolidate its news teams into single buildings located in Montreal and Quebec City. While the news organizations will continue to function independently, this move will facilitate better coordination and resource utilization.
Real Estate Asset Disposal
As part of its cost-cutting measures, TVA Group will also sell off its real estate assets located outside of Montreal and Quebec City. This strategic decision will enable the company to focus its resources on core operations and align with its restructured business model.
TVA Group’s Acting Chief Executive Pierre Karl Péladeau explains the necessity of these changes, emphasizing that the current financial deficit is no longer sustainable. The company had previously implemented some workforce reductions and programming cancellations in February, reflecting its commitment to addressing the ongoing challenges within the industry.