Corus Entertainment is pushing its cost reductions further into the core of Global News, eliminating positions tied to its national flagship newscast and its largest western newsroom just weeks after another round removed 43 unionized television jobs across Canada.
The cuts come despite substantial reductions already showing up in Corus’s expenses. In fiscal Q3, the company’s television employee costs fell by $6.4 million from a year earlier. Television segment profit still dropped 52% to $29.9 million as revenue fell 16% to $229.5 million, according to Corus’s financial statements.
Broadcast Dialogue reported Thursday that Corus confirmed positions are being eliminated at Global BC, Global National, News 640 in Toronto, and elsewhere in its talk-radio operations.
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Corus described the latest reductions as a “small number of changes in select markets.”
“These changes are part of the difficult but necessary work to ensure our teams are structured in a sustainable way,” the company told Broadcast Dialogue.
Corus did not disclose how many jobs are being eliminated, nor did it specify which positions at Global National and Global BC are disappearing.
The company said the restructuring does not involve station closures and maintained that it remains committed to its news operations.
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Two layoff rounds in five weeks
The latest cuts follow a much larger restructuring announced in mid-July. Unifor said 43 unionized television positions were eliminated in that round, including 28 in Alberta, five in Winnipeg, two in British Columbia, two in Saskatoon, three in the Maritimes, and three in Ontario.
The restructuring included the centralization in Toronto of technical production for Global News broadcasts in Calgary and Edmonton. Corus said the Alberta newsrooms would remain open and continue using local anchors, reporters, producers, and newsgathering staff.
The significance of the newest round is that cuts are now confirmed at Global National and Global BC, rather than being concentrated primarily around the Alberta production reorganization.
Corus’s financial results explain why cost containment remains central to the company’s strategy. For the three months ended May 31, consolidated revenue fell 16% year over year to $249.4 million, with advertising revenue down 20% and subscriber revenue down 13%.
The firm recorded a $36.5 million net loss attributable to shareholders, compared with a $7.3 million loss a year earlier. Free cash flow improved to positive $6.2 million for the quarter, although free cash flow for the first nine months of fiscal 2026 remained negative at $46.1 million.
Television, Corus’s largest segment, generated $120.3 million in advertising revenue during the quarter, down from $150.9 million a year earlier. Subscriber revenue fell to $96.5 million from $111.1 million.
$500-million restructuring
The newsroom reductions are also taking place as Corus attempts to complete a major balance-sheet restructuring. At May 31, Corus reported $1.17 billion in net debt, with its net debt-to-segment-profit ratio rising to 8.20 times from 6.01 times at the end of fiscal 2025.
Under its proposed recapitalization, certain lenders would exchange approximately $500 million of debt for 99% of a newly created parent company, leaving existing Corus shareholders with an aggregate 1% interest before further dilution from warrants.
Corus expects the transaction to reduce debt and other liabilities by more than $500 million and cut annual cash interest payments by as much as $40 million.
The Ontario Superior Court approved the company proceeding with the arrangement in March, but the transaction remains subject to regulatory approvals, including from the CRTC and Toronto Stock Exchange.
The CRTC said Corus had argued the restructuring is necessary because of its high debt load and declining cash flow. The broadcaster has also asked the regulator to waive the usual tangible-benefits payments associated with changes in control.
Corus’s lenders have separately extended a waiver of certain leverage and interest-coverage covenants through September 1, 2026, allowing the company continued access to liquidity while the recapitalization remains outstanding.
