Channel 10 is preparing for substantial across-the-board layoffs. Sources inform "Globes" that in view of channel's disappointing business results in the first quarter of 2016, management is currently getting ready for cuts that will include layoffs, salary cuts, and possibly also cancelation of productions.
Market sources believe that television advertising plummeted by over 20% over the past three months, causing a wide gap between Channel 10's business plan and its actual results.
Channel 10's workers committee is scheduled to convene a workers' meeting today to inform them of the particulars. It is believed that the committee will not agree to another series of cuts, after having made many concessions in recent years, especially last year before Channel 10's relicensing. A protest by the workers opposed to the measure cannot be ruled out.
Before Channel 10 was relicensed in 2015, Channel 10 CEO Yossi Warshavsky pushed through a major program of cuts aimed at preparing the channel for sale and relicensing. The plan included salary cuts of up to 80% for workers, mainly senior staff, and many workers were laid off.
Since Channel 10 was relicensed in 2015, sources at the channel said that its economic situation had stabilized, and the channel declared a profit for 2015. It is now believed that Channel 10 will finish the first quarter with a gap in the tens of millions of shekels between the targets and the results.
Both Channel 10 and workers' committee chairman Matan Hodorov declined to comment.
Published by Globes [online], Israel business news - www.globes-online.com - on April 5, 2016
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