Sky Puts 900 Positions in Jeopardy amid Significant Shake-up to Compete Against US Streaming Services
The company revealed that 900 positions are now at risk as the media giant continues to reshape its operations amid the rise of streaming.
Staff Impact
Sky, which has roughly 23,000 employees in the UK, expects that ongoing discussions will lead to about 600 roles being cut, with a further 300 redeployed to other areas.
Recent Product Launches
The newest wave of reductions – marking the third in a little over 18 months – follows a series of new releases, including an updated version of the company’s television and a more affordable alternative.
Company Direction
The Comcast-owned media group is concentrating efforts on improving existing services, with reductions primarily impacting Sky’s technology and product teams along with associated business divisions.
Since the start of last year, Sky has cut nearly 3,500 positions as it moves away from traditional satellite television services toward internet-delivered solutions in its battle with US giants like Netflix.
Overall, after Comcast acquired Sky for £31bn in 2018, approximately 6,000 jobs have been cut from the organization.
Streaming Adoption
Sky estimates that more than 90% of new subscriptions now come through online products such as its smart TV and an innovative streaming set-top box.
“In recent years, Sky has introduced a range of industry-leading offerings including our high-speed internet service,” said a company spokesperson. “These innovations are now firmly established and enjoyed by millions of customers, strengthening Sky’s standing for creativity and great service. As we look ahead, we are shifting our approach to bring customers a new era of experience by investing in digital-first service, premium entertainment, and even better performance from our products.”
Previous Job Cuts
In March, Sky announced plans to reduce 2,000 jobs at its support facilities and closed three sites.
The company said that the move would help it become “future-ready” as it shifted from phone-based customer interactions to online support.
Last January, Sky cut about 800 jobs, mostly from its group of home setup technicians, as more consumers abandon traditional pay-TV equipment in favor of “plug-and-go” internet-based alternatives.
New Streaming Deal
Earlier this year, Sky formed an agreement with Warner Bros Discovery, the owner of acclaimed film studios and award-winning series.
This arrangement will result in Warner’s digital platform becoming accessible via Sky, though it also resulted in the loss of exclusive broadcasting rights for certain programs.