Radio / Television News

CBC to trim spending, too: “If it’s discretionary, it’s gone,” says Lacroix


TORONTO – Along with Canwest and CTV, count the CBC as another Canadian broadcaster telling staff that it must cut back on discretionary spending and that new hires will be closely scrutinized.

Of course, it’s nowhere near as bad as at Canwest, which cut 210 positions from its TV division less than two weeks ago, or at CTV, which said last week layoffs are likely coming, but with a $45 million dollar revenue shortfall on the English side of the CBC coupled with the downturn in the economy and a soft ad market, the national public broadcaster has to respond, CBC president and CEO Hubert Lacroix told staff in a memo on Friday. (At least he didn’t blame the CRTC for anything…) 

“Ad spending is dwindling; in fact, some of the traditionally biggest ad spenders are on the verge of corporate meltdowns, GM for example,” wrote Lacroix.

“There is no question: CBC/Radio-Canada is not immune, and we will need to adapt to changing conditions and circumstances to see our way through these tough financial times. Our revenue streams are taking a hit; we are currently projecting a deficit in our television operations, though not to the extent of our competitors, and our levels of federal funding are never guaranteed,” he added.

So, he has asked all employees to cut wherever they can – and if they see a place where expenses can be trimmed, send that info up the chain of command. If enough can be done, “(w)here others are contemplating and predicting layoffs, we are looking to put in place and push forward with solutions that won’t involve cutting jobs,” he said.

For now, the Corp is going to take a look at its capex line and look to defer and cancel certain projects – and new hires “will be reviewed case-by-case at the vice-presidential level,” wrote Lacroix.

“We are also targeting a significant reduction in travel, hospitality and duty entertainment and an additional reduction in overtime expenditures, which will also be managed at the vice-presidential level.”

Big Christmas parties are out.

“In other words, if it’s discretionary, it’s gone. If it’s anything less than a bona fide requirement, it’s gone. If it’s not absolutely strategic, it’s gone,” said the CEO.

“While times are tough, we should not lose sight of the fact that we have a strong organization, and an incredibly meaningful brand to which Canadians relate. If we are financially prudent and stick to the programming strategies we currently have in place – which are today showing tremendous progress and results with audiences – I’m confident we can see our way through this.”

– Greg O’Brien