Channel 4 has unveiled a major digital overhaul which will see it move out of its London headquarters and make hundreds of people redundant.
The broadcaster published its ‘fast forward’ plan today which will plot a route of digital change over the next five years, in a bid to cut down on costs.
This comes after Channel 4 was reportedly preparing to slash nearly 250 roles, over 15 per cent of its workforce, marking the largest cut in its history.
The cuts come amid the backdrop of a tough digital advertising market. Digital advertising on the broadcaster’s streaming service makes up around a quarter of the company’s £1.14bn total revenue.
It was reported last week, Channel 4 is seeking to shrink a hefty £108m annual wage bill while minimising the need to pull cash from its huge £700m content budget.
Today’s announcement says Channel 4 seeks to embrace “the generational shift that is taking place in TV viewing”, by refocusing on streaming.
The strategy will look at “investment in distinctive, streaming-friendly British content and social media; growing diversified revenue streams; and reengineering the business to become leaner, simpler and nimbler, divesting from legacy operations to support digital priorities.”
Its new plan also includes “moving out of Channel 4’s London base in the next few years”, currently based at the £90m headquarters in Horseferry Road, Victoria, where it’s been since 1994.
“With 600 roles based outside of London by the end of 2025, lower headcount in London overall, and a shift to flexible working, Channel 4 will find a new fit-for-purpose office space in central London”, with 200 roles set to go.
The 200 redundancies represent a cut of 18 per cent in its workforce, mainly working in so-called ” legacy operations”.
As well as moving out of the capital and cutting jobs, Channel 4 included several other objectives, such as ramping up membership of its ad-free streaming service and building a “double-digit million e-commerce business” in which customers could purchase products.
Its chief executive Alex Mahon, CEO, said the new plan “will accelerate our digital transformation. So Channel 4 remains a trusted, disruptive and distinctive brand into the 2030s.”
She added: “While getting ourselves into the right shape for the future is without doubt the right action to take, it does involve making difficult decisions.
“I am very sad that some of our excellent colleagues will lose their jobs because of the changes ahead. But the reality of the rapid downshift in the UK economy and advertising market demands that we must change structurally.
“As we shift our centre of gravity from linear to digital our proposals will focus cost reductions on legacy activity. In preparing for a new digital-first future, I hope we can make Channel 4 simpler – for staff and our suppliers – and create a more efficient, inclusive and high-performing organisation.”
Channel 4’s move comes as the industry grapples with a shift towards streaming and away from live television broadcasting. Streaming services such as Netflix have also introduced advertising subscription services in a bid to shore up their finances.