"Ax hovers over CTV"

Hey Guys,
Read this article summary I wrote it talks about the current economic instability. What is going on right now is pretty crazy and it is affecting the media industry which will ultimately affect all of us so read below to keep informed!

"Ax hovers over CTV"

This article, “Ax hovers over CTV,” found on mediaincanada.com is about the current economic crisis and how it is largely affecting the Canadian media industry, as well as many others.

Early this week CTV employees received internal memos from Ivan Fecan, the CEO of CTVglobemedia explaining that changes were to be set in place in an effort to decrease company costs. The memo was informing employees of the midweek meeting that was being arranged in order to discuss necessary strategic planning for the network due to the current uncertainty and instability within the industry. The downsizing of staff members is not unique to this media company, as last Friday Canwest Global Communications, CTV’s competition declared the loss of 560 jobs from their company. Fecan claims that at this point, CTV plans to make dramatic cuts in travel and entertainment spending and plans to put a hold on any new hiring before they let go of existing jobs.
Yet, as much as CTV would like to avoid job cuts as much as possible, the layoff seems inevitable with today’s economy. Using a diplomatic effort to weed out the less productive and more invaluable employees to the company, Fecan has put in requests that the heads of each department identity the top efficient workers. Employees who aren’t seen as valuable by their department head, or who just don’t measure up will have to be let go as it is apparent that CTV can only afford to keep the best at this time. In an effort to settle employees’ nerves, Fecan further stated that areas with strong revenue or competition may actually receive additional resources rather than cutting them. Still, new projects and up and coming ones are being put to a stop or delayed until further notice.

“There is never a right or easy time to let go of employees but these measures are necessary as the difficult times are just approaching for the Canadian broadcast industry.” Unfortunately, these measures are not just going to affect CTV, it will create a domino effect and other companies that rely on the network, such as indie producers of which depend on broadcasters for commissions will be largely impacted by the networks changes. The fragile state of the economy will highly influence levels advertising considering the fact that companies are reluctant to invest in major financial projects in an unstable economy. The recent examples of reluctance to invest in advertising are apparent with the present situation of car and financial companies which have experienced considerable decreases in consumer spending. Further, the ripple effect is evident when it comes to the media industry as job cuts or various decreases in all levels of media will impact all of the others that are associated with it in one way or another.

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