Sky Puts 900 Positions at Risk in Major Restructuring for Competition With US Streaming Services
Sky has announced that 900 roles are currently under threat as the broadcaster pushes forward with reshaping its operations amid the rise of streaming.
Staff Impact
Sky, which employs about 23,000 employees in the UK, expects that ongoing discussions will result in about 600 roles being cut, with another 300 redeployed within the organization.
Recent Product Launches
The newest wave of reductions – marking the third in a little over 18 months – follows a number of new releases, including an updated version of its smart TV and a more affordable option.
Strategic Focus
The Comcast-owned media group is focused on improving existing services, with the cuts primarily impacting Sky’s technology and product teams along with related corporate functions.
Starting of last year, Sky has eliminated nearly 3,500 roles as it shifts focus from traditional satellite television services toward streaming-based solutions as it competes with US giants such as Netflix.
Overall, after Comcast acquired Sky in a multi-billion deal in 2018, approximately 6,000 roles have been removed from the organization.
Shift to Digital
The company believes that over 90% of new subscriptions now come through internet-based products such as its smart TV and a new internet TV device.
“In recent years, Sky has launched a range of market-leading products such as our high-speed internet service,” stated a company spokesperson. “These products are now firmly established and used by millions of customers, reinforcing Sky’s standing for innovation and great service. Moving forward, we are changing our strategy to bring customers a new era of experience by investing in digital-first service, unbeatable content, and even better performance from our products.”
Earlier Reductions
Earlier this year, Sky announced plans to reduce 2,000 roles at its customer service centres and closed three sites.
Sky explained that the move would help it become “future-ready” as it shifted from telephone customer interactions to online support.
In January of last year, Sky eliminated approximately 800 jobs, mainly from its team of home setup technicians, as a growing number of users abandon satellite dishes and set-top boxes in favor of easy-to-use internet-based alternatives.
New Streaming Deal
More recently, Sky struck a deal with Warner Bros Discovery, the owner of acclaimed production companies and award-winning series.
This arrangement means the company’s digital platform being made available through Sky, but it resulted in the loss of sole distribution privileges for some programs.