Sinclair Broadcasting Group is implementing “company-wide reductions” in its staff due to the “profound impact” of the COVID-19 pandemic, according to multiple reports.
A spokesperson for Sinclair told Variety that the company is laying off 5 percent of its workforce. The company employs more than 9,211 people, which means that around 460 employees will be affected.
The spokesperson said in a statement to Variety that the impact of the pandemic “continues to be felt in all sectors of the economy, something that can have a profound impact on a company as diversified as ours.”
“From local businesses and advertisers to distributors and partners, no component of our business ecosystem has been fully protected from the impact of the global pandemic,” the statement said. “In response to this, we are currently experiencing company-wide reductions in our workforce, including corporate headquarters, to ensure we are well positioned for future success.”
In a memorandum to staff obtained by CNN BusinessChris Ripley, CEO of Sinclair, said the decision “was not made lightly.”
“Over the last year, we have seen many of our peers make mass cuts, a step we refrained from taking while taking cuts elsewhere, including capital budgets, discretionary spending, and nonessential spending.”
Sinclair on February 24 reported a 7 percent decreasee in total revenue for the fourth quarter of 2020 compared to the fourth quarter of 2019. However, total revenue for 2020 increased 40 percent from 2019.
Sinclair operates approximately 190 television stations in 88 markets and owns multiple national networks.