Channel 4 is expected to cut its programming budget by nearly £150 million while furloughing about 100 staff to fight and survive any financial woes brought by the coronavirus crisis. The broadcaster, that is mostly funded by TV advertising, as well as being publicly owned expects to face a slump in the advertising revenue by 50% in the coming two months. It was estimated that Channel 4 was left with finances for six months only without having to make any cuts.
The management of the broadcaster that includes Ian Katz, the director of programs as well as Alex Mahon, the chief executive will be taking a pay cut of 20% and will also not be receiving any bonus. Channel 4 also made an announcement that about 10% out of over 900 staff are expected to be furloughed.
Mahon commented that the coronavirus pandemic has severely impacted the revenues for a commercially funded business. The broadcaster is taking actions so that it is able to manage its costs correctly and provide protection to the staff as well as the current ability to cater to the audience.
Channel 4 has planned to cut £150 million from a budget of £660 million for programming which represents about a quarter of its expenditure. The broadcaster confessed that it will air fewer shows on the screens in the year while the shooting of the upcoming series called The Great British Bake Off has been paused currently on account of the COVID-19 spread.
Katz stated that this cut will be reflecting on the program's delay which have not yet been produced given the circumstances, as well as multiple shows that would be cancelled for the time being. This will result in an impact on the entire portfolio of the company with several newer shows either canceled or postponed.
Channel 4 is also planning to earn £95 million as extra savings that include delaying its investments and chopping off marketing budget.