Mexican media group Televisa is set to axe up to 730 staff in response to a slowdown in ad sales.
Anonymous officials at the broadcaster, the nation’s largest, revealed that the company is embarking on a programme of cuts which could exceed $50 million. Televisa is particularly concerned at the continued slowdown in the US economy, which could harm the multinational firms that furnish a sizeable chunk of its ad revenues.
According to these insiders, Televisa is in talks with the broadcasting union over job cuts of around 4%–5% from a total workforce of 14,600. Other cost-cutting measures include the axing of 24-hour news channel ECO and a reduction in expenditure on its web portal Esmas.
However, the cuts are coming too late for many analysts, who believe that Televisa should have followed the example of rival Mexican broadcaster TV Azteca by responding to the fall in ad revenues some time ago. First-quarter results, scheduled for April 25, are consequently expected to be poor.
News source: Financial Times