BSkyB to axe 250 Jobs due to dwindling profits
# Jul 31, 05:09 PM by Mick
BSkyB is cutting 250 jobs as it see’s is operating profits fall, despite good sales of its Sky+ Service and a record number of new customers. BSkyB’s operating profit was down 11% (to Ã‚Â£724 Million). The fall in profits is being blamed on two main issues; The loss of advertising revenues, the subsequent result of Sky and Virgin Media failing to reach an agreement to carry Sky’s basic channels and also the higher cost of Sky’s new contract to show FA Premiership League football games.
However, despite the failed agreement, even today, Sky and Virgin Media are said to be still negotiating regarding carriage of Sky’s basic channels on Virgin Media’s cable TV platform (Sky’s basics are Sky One and Two, Sky News and Sky Sports News).
BSkyB has said some of the job losses would arise from vacant positions remaining unfilled but redundancies have not been ruled out.
Also, there is still the decision of the Competition Commission appeal tribunal, regarding Sky being forced to sell its 17.9% stake in ITV, which BSkyB purchased in 2006, effectively blocking a takeover attempt by Virgin Media, (ntl:Telewest) as it was known at the time. However, Sky’s Chief executive, Jeremy Darroch has stated that regardless of the outcome of the decision from the commission, it may consider selling its shares in ITV.
- News source Telegraph