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VIRAL EXCLUSIVE
Feb. 2, 2024
Job Losses Loom as Sky Restructures Operations for Internet-Centric Services
Sky, a prominent media group, is set to cut approximately 1,000 jobs in the UK as it pivots towards a more internet-focused service model. By: Wee Yan Ling
The restructuring was
revealed to primarily target engineers, reflecting on the decreasing demand for
satellite dish installations at home. The move represents about 4% of Sky’s
current UK workforce which totals to 26,000 employees. The increase in digital
products had empowered customers to independently set up services hence
diminishing the need for specialised assistance.
The shift in strategy is
in tune with Sky’s transformation since the company was acquired by US media
giant Comcast for more than £30 billion in 2018. The company is adapting to
changing customers preferences with the growing popularity of Sky Glass and Sky
Stream, as both do not need intricate installations, hence influencing with the
recalibration of the workforce.
Employees who are directly
affected by the cut will be going through a consultation period where they are
given the opportunity to voice their opinions on the changes proposed before
decisions are finalised. This shrinkage in the workforce is adhering to a
broader trend in the media industry and exemplified by Channel 4’s recent
announcement of 200 job cuts, which comprises 18% of its workforce as they
specialise in digital services.
Channel 4 is owned
publicly but relies heavily on advertising revenues as it navigates through the
economic challenge and the shift in viewer preferences. The CEO of the
broadcaster, Alex Mahon had attributed the job cuts to the swift economic
downturn and a focus on digital offerings. The industry-wide advertising
decline which was the worst in 2008 has elicited Channel 4 to amend its budget
as it leads to cuts in programming and the dedication to relocating 600 roles
outside London by 2025.
Channel 4 has implemented
a Fast Forward strategy where they aim to transform into a digitally-driven
public service streamer by the year of 2030. This will in turn reduce 18% of
their headcount, close the positions of unfilled roles and move away from its
central London base. The broadcaster also has plans to expand their digital
revenues and viewership through strategic programming investments and platform
targeting.
The shift in industry has
underscored the vitality of digital-first strategies as Channel 4 aims to
extend to doubling its ad-free tier membership, and increase content on their
platforms such as YouTube. The UK media and entertainment union Bectu has also
pledged to render aid to those affected employees as they acknowledge the
changing landscape that the industry is navigating.
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