Advertising Alump Pushing Five to Cut Jobs
Wednesday, January 28, 2009 6:04
Facing a severe downturn in advertising, Five is now planning for a dramatic cuts. This move would possibly up to a third of its current 270 employee. Five wants to protect its peak-time schedule, forcing the channel to make draconian savings on its wage bill through this job cuts.
It’s predicted that the channel’s turnover of about £340 million in 2008 would tumble by nearly £70 million, which is a fall of up to 20%, reflecting a 10% fall in the television advertising market coupled with the effects of a 1% loss of audience to ITV, Channel 4 and BSkyB. The problem for Five is that it has already signed up to expensive long-term contracts for programmes like Neighbours, CSI and Home and Away. Its accounts indicate that the long-term obligations of the channel ballooned in 2007, when Jane Lighting and chief executive, spent heavily to woo audiences. As a result, the new executive chairman of Five—Dawn Airey, has engaged Eden McCallum, a consultancy, to try to save some money.
The blow to the hopes of a merger, which was proposed by RTL, its owner and the state-owned Channel 4, further add to the pressure of Five.
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