Channel 4's Horseferry Road headquarters was last valued at £90 million. Photo: Jack Taylor/Getty Images
Channel 4 will sell its former London headquarters for £90 million and begin the biggest job cuts in its history as it grapples with the decline of traditional TV viewing.
The public broadcaster said it would move. from its Horseferry Road offices in Westminster over the next few years.
It comes after Channel 4 confirmed it would cut its workforce by 18%, or 240 positions, in its biggest ever cut work places.
Many of the cuts are expected to be focused on London, as the broadcaster plans to have 600 roles outside the capital by 2025.
Channel 4 also said its move to flexible working had led to a reduction in the number of staff working in its London offices.
The broadcaster outlined plans to close channels that “no longer generate revenue or public value on that scale” ” .
Its Box music channels will be shuttered this year, and others, such as standard-definition versions of satellite channels, will be shuttered over time.
The shake-up comes three decades after as Channel 4, founded by Margaret Thatcher in the 1980s, opened its headquarters in London.
The building was designed by architect Richard Rogers and was granted Grade II listed status last year. It was last valued at £90 million.
The future of the Horseferry Road site, famous for its steel sculpture of the Big Four, has long been in doubt as Channel 4 increasingly shifts its focus away from London .
The broadcaster moved its headquarters from London to Leeds in 2021 as it fought the government's attempt to privatize. The company will now look for new, smaller office space in central London.
The company has recently been looking for ways to raise cash as it grapples with a slump in the advertising market.
Channel 4 boss Alex Mahon has warned the broadcaster may need to access emergency debt funding. Photo: Leon Neal/Getty Images
Chief executive Alex Mahon has warned that Channel 4 may have to break the glass on its £75m emergency credit facility to help strengthen its balance sheet.
The inflation crisis and wider economic problems have prompted many brands cut costs. advertising expenses.
Channel 4, which is publicly owned but commercially funded, has taken over responsibility for some programming and expects a deficit in 2023 as well as a 9% fall in revenue.
< p>In addition to the advertising slump, Channel 4 is struggling with a shift in viewership to deep-pocketed US streaming rivals such as Netflix and Disney.
Meanwhile, its core youth audience is spending increasing amounts of time on social media apps such as TikTok and Snapchat.Around 70% of the job cuts will be concentrated at Channel 4's traditional TV channels as it becomes a digital-first broadcaster.
Marketing director Zaid Al-Kassab and product director Dave Cameron will leave the business as part of a capital overhaul repair.
Ms Mahon said: “While getting yourself in the right shape for the future is undoubtedly the right thing to do, it requires making difficult decisions. I am very sad that some of our wonderful colleagues will lose their jobs due to the changes ahead.
“But the reality of the rapid decline in the UK economy and advertising market requires that we change structurally. As we shift the focus from linear to digital, our offerings will be aimed at reducing the costs of legacy activities.”
Channel 4 today also unveiled a new strategy, dubbed 'Fast Forward', aimed at accelerating the transition to the era streaming.
The broadcaster is looking to increase the share of its revenue coming from digital sources from current levels. from 27% to 30% this year and 50% by the end of the decade. The company plans to double the number of subscribers at its ad-free tier by 2030.
Executives will also explore new ways to generate revenue, including building its own production facilities after the broadcaster's ban on producing its own programs was eased last year.
Other initiatives include expanding its e-commerce offering, allowing viewers to purchase products through the All4 streaming platform.
Channel 4 will also review its commissioning strategy to refocus on popular streaming programs such as reality TV.< /p >
In a letter to suppliers, Chief Content Officer Ian Katz said the network will create a new entertainment and reality department that will be responsible for shows ranging from “The Final Leg” to “Married at First Sight.”
>It will also merge its documentary and factual entertainment divisions, and combine TV drama commissioning with film commissioning.
As part of the changes, top executive Kiran Nataraja will take on an expanded role as director of streaming strategy and content.
Ms Mahon added: “As we prepare for a new digital future, I hope we can make Channel 4 easier – for employees and our suppliers – and create a more efficient, inclusive and high-performing organization.” .
Recent Comments