Fending off a $45-million budget shortfall and the impending global recession, CBC is putting a freeze on discretionary spending.
But the pubcaster does not plan layoffs, at least for now, CBC/Radio Canada president Hubert T. Lacroix told jittery employees on Friday via an internal memo released to the media.
Lacroix said the two key revenue drivers for CBC/Radio Canada — TV ad revenue and parliamentary appropriations — faced uncertainty and likely cuts.
‘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,’ Lacroix said.
At least for now, the CBC does not plan to go the way of Canwest Global and CTV and cut into its muscle by trimming staff.
‘Where others are contemplating and predicting layoffs, we are looking to put in place and push forward with solutions that won’t involve cutting jobs,’ the CBC president argued.
‘Changing circumstances might over time challenge us in this regard it’s impossible to predict what exactly is to come but I want you to know that we’re putting our people first in all of this, and will continue to do so,’ he added in a note of reassurance.
The CBC will impose a freeze on discretionary spending, and defer or cancel capital expenditures, if warranted.
And the pubcaster, while stopping short of a hiring freeze, said it will review all new hires at the vice-presidential level.
‘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,’ Lacroix outlined.
The public network has come under fire in the last week from newly installed Heritage Minister James Moore and Quebec newspaper accounts for alleged lavish personal spending by senior CBC execs on travel and hospitality. The CBC shot back Thursday that the corporate spending complied with network policy.
Lacroix also said the CBC will not underwrite Christmas parties — ‘Do take the time to wish each other well; just don’t take the budget to do it’ — or budget for much else beyond core duties.
‘If it’s anything less than a bona fide requirement, it’s gone. If it’s not absolutely strategic, it’s gone,’ he continued.
The austerity measures at the CBC follow rival networks unveiling their own cost-cutting programs to get through a deepening industry downturn.
Canwest was first, announcing 560 planned job cuts, followed by CTV imposing a freeze on hiring and discretionary spending and contemplating layoffs after a network review.
As of Oct. 31, the CBC faced a $45-million budget shortfall caused by lower ad revenues.
‘The impact on advertising revenues on the French side of the house was slower to take hold and has to date been less severe, but [French services EVP] Sylvain Lafrance and his team have also been taking appropriate action to adjust,’ Lacroix explained.
The CBC president finished off his letter by calling on individual employees to bring forward ideas on how their unit or department can cut costs in the coming year.
‘And if the idea is viable, I expect to see it implemented immediately. If that’s the case, you will be recognized for your contribution,’ Lacroix urged.