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Canada's Bell to cut 1,300 jobs, close and sell some radio stations

Published 2023-06-14, 01:54 p/m
© Reuters. FILE PHOTO: A sign for Bell Canada on a vehicle in Toronto, Ontario, Canada December 13, 2021.  REUTERS/Carlos Osorio

(Reuters) - Canadian media and telecom company Bell said on Wednesday it would cut 1,300 jobs and close six radio stations in a bid to rein in costs as well as sell three AM radio stations controlled by the unit of BCE (TSX:BCE) Inc.

The job cuts, most of which would affect management, add to the tens of thousands of layoffs announced this year by companies from Meta Platforms to Goldman Sachs (NYSE:GS) as they grapple with a growth slowdown caused by rising interest rates and elevated levels of inflation.

Bell also said it would be moving to a single newsroom approach across brands to boost efficiency.

The company said it was closing its foreign bureaus in London and Los Angeles, eliminating all positions, while the Washington bureau would be scaled back.

"I think it is a shame. CTV has some really experienced, hardworking, talented journalists who Canadians have come to rely on, and so that's a real loss for Canada and Canadians," Canada's Finance Minister Chrystia Freeland told reporters in Ottawa on Wednesday.

Impacted employees would be informed this week, Bell said in a memo shared with employees. The memo, seen by Reuters, added that vacant positions were eliminated in an effort to minimize impact on the team.

Bell has been struggling to lower costs and boost audience growth as consumers gradually shift to streaming services, which has also led to a pullback in advertising spending.

Operating revenue for the company fell 5.5% to $780 million, mainly due to lower advertising and subscriber revenue in its first quarter.

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Separately, sharpening investor scrutiny of Shopify (TSX:SHOP)'s efforts to build out an order-fulfillment network that could weigh on earnings, forced the Canadian e-commerce company to cut 10% of its workforce in July last year.

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