Bell Media will sell 45 radio stations at the time of the layoffs

TORONTO – BCE Inc. It is selling 45 of its 103 regional radio stations as it cuts nine percent of its workforce, including journalists and other workers at its Bell Media subsidiary.

Affected stations are in British Columbia, Ontario, Quebec and Atlantic Canada.

The company announced Thursday that 4,800 jobs would be cut “at all levels of the company” in an open letter signed by CEO Mirko Bibic.

Some employees were notified or were to be notified of the layoffs on Thursday, and the balance will be told in the spring. Bibich said the company uses vacancies and natural attrition to keep layoffs to a minimum.

It's the second major layoff at the media and telecommunications giant since last spring, when six percent of Bell Media's jobs were eliminated and nine radio stations were closed or sold.

In a separate internal memo, Bell Media President Sean Cohan said the company plans to sell 45 radio stations to seven buyers: Vista Radio, Whiteoaks, Durham Radio, My Broadcasting Corp., ZoomerMedia, Arsenal Media and Maritime Broadcasting. The sales are subject to CRTC approval and other closing conditions.

“This is a significant alienation. Because it's no longer a viable business,” Bell chief legal and regulatory officer Robert Malcolmson told The Canadian Press.

“We continue to do viable operations, but this is a business that is going in the wrong direction.”

The company declined to say exactly how many jobs it has cut at Bell Media.

Malcolmson said Bell Media is in the midst of a “digital transformation” for both entertainment and news.

But whether prioritizing digital growth will be viable for the company in terms of profitability remains to be seen.

“We are investing in it; We'll see,” said Malcolmson. “Without some form of regulatory support, it's difficult.”

He accused the federal government of taking too long to help media companies and the CRTC of being too slow to respond to an “immediate crisis.”

That extends to two pieces of legislation designed to help Canada's struggling media sector: Bill C-18, also known as the Online News Act, which aims to force tech giants to compensate Canadian news outlets for their content, and Bill C-11, which renews The Broadcasting Act requires digital platforms such as Netflix, YouTube and TikTok to contribute and promote Canadian content.

Ottawa remains at loggerheads with Facebook's parent company Meta over C-18, as the company continues to block news links on its platforms. In addition, the federal government has capped the amount of money media outlets receive from Google's $100 million annual payments to $30 million, with the rest going to print and digital news outlets.

“In practice, it doesn't do anything. It's very difficult to say the least,” Malcolmson said.

“We have been advocating reform for years. It won't come fast enough, and when it does, it won't provide significant help.”

Thursday's job losses at Bell Media are directly related to the direction of regulatory Bill C-11, Malcolmson said.

The CRTC held a hearing late last year asking whether streaming services should be asked to make initial contributions to the Canadian content system to help level the playing field with local companies. The Commission hopes to introduce the new rules by the end of 2024.

But Bell's chief said the company needs immediate help, which could come from a fund he proposed subsidizing streamers for local or national news.

“Hopefully they'll do it, but we can't wait two years for it to happen, so you're going to see actions like this today,” he said.

Bell has battled other regulatory rulings in the past year, which it says will complicate the situation for its broadcast division.

That includes an application to the Federal Court of Appeal in October to overturn a CRTC decision that extended its broadcast licenses for another three years. He said the decision was made without a public hearing and could lead to the regulator's earlier assessment of requests to waive requirements for local news and Canadian television stations last June.

Bell Media's ad revenue is down $140 million in 2023 from last year, and the company's news division is losing more than $40 million in annual operating costs, Bibich said in his letter.

On Thursday, Bell said it may further cut network investments on its telecom side because it is at odds with the CRTC over what it calls a “predetermined” regulatory direction.

Asked about the company's image amid ongoing layoffs, Malcolmson noted that Bell's executive team has shrunk in recent years and executive pay has stagnated.

“We owe it to our shareholders and our employees to make sure we run the business wisely,” he said.

List of Bell Media radio stations (new owner)

CHOR, Summerland, BC (Vista Radio)

CJAT, Trail, BC (Vista Radio)

CKKC, Nelson, BC (Vista Radio)

CKGR, Golden, BC (Vista Radio)

CKXR, Salmon Arm, BC (Vista Radio)

CKCR, Revelstoke, BC (Vista Radio)

CJMG, Penticton, BC (Vista Radio)

CKOR, Penticton, BC (Vista Radio)

CJOR, Osoyoos, BC (Vista Radio)

CICF, Vernon, BC (Vista Radio)

CHSU, Kelowna, BC (Vista Radio)

CILK, Kelowna, BC (Vista Radio)

CKFR, Kelowna, BC (Vista Radio)

CKNL, Fort St. John, BC (Vista Radio)

CHRX, Fort St. John, BC (Vista Radio)

CJDC, Dawson Creek, BC (Vista Radio)

CKRX, Fort Nelson, BC (Vista Radio)

CFTK, Terrace, BC (Vista Radio)

CJFW, Terrace, BC (Vista Radio)

CHTK, Prince Rupert, BC (Vista Radio)

CKTK, Kitimat, BC (Vista Radio)

CKLH, Hamilton, Ont. (white oak)

CHRE, St. Catharines, Ont. (white oak)

CHTZ, St. Catharines, Ont. (white oak)

CKTB, St. Catharines, Ont. (white oak)

CKLY, Lindsay, Ont. (Radio Durham)

CKPT, Peterborough, Ont. (Radio Durham)

CKQM, Peterborough, Ont. (Radio Durham)

CFJR, Brockville, Ont. (My broadcasting corporation)

CJPT, Brockville, Ont. (My broadcasting corporation)

CFLY, Kingston, Ont. (My broadcasting corporation)

CKLC, Kingston, Ont. (My broadcasting corporation)

CJOS, Owen Sound, Ont. (ZoomerMedia)

CHRD, Drummondville, Sq. (Arsenal Media)

CJDM, Drummondville, Que. (Arsenal Media)

CFEI, St. Hyacinth, Que. (Arsenal Media)

CFZZ, Saint-Jean-sur-Richelieu, av. (Arsenal Media)

CIKI, Rimouski, Que. (Arsenal Media)

CJOI, Rimouski, Que. (Arsenal Media)

CFVM, Amqui, Que. (Arsenal Media)

CIKX, Grand Falls, NB (marine broadcasting)

CJCJ, Woodstock, NB (marine broadcasting)

CCBC, Bathurst, NB (marine broadcasting)

CKTO, Truro, NS (Marine Broadcasting)

CKTY, Truro, NS (marine broadcast)

This report by The Canadian Press was first published on February 8, 2024.

CJAD 800 — BCE Inc. a division of Bell Media.