Fox targets $250m cuts

US media giant 21st Century Fox is looking to cut its television and film staff costs by US$250m this year.

James Murdoch

The company has set up a voluntary buyout initiative for US staff at the Fox Networks Group and 20th Century Fox film studio.

Fox has not yet decided a target for the number of redundancies but it is expected to be in the hundreds.

“As we position 21st Century Fox for the future, we want to ensure our organisation remains agile and structured to fully capture the many opportunities ahead of us,” said the firm in a statement.

“With this we are looking across our film and television businesses to transform certain functions and to reduce costs. As part of this process, which is in its early stages, today some colleagues from Fox Networks Group and 20th Century Fox will be offered a generous benefit package if they opt to voluntarily leave the company.”

The news comes amid a time of great change for Fox’s US units and the TV industry in general, with viewers flocking to watch content on VoD services and online. It means less revenue for companies like Fox and others that rely on cable programming fees for profits.

Fox’s move is similar to that of Viacom and Time Warner last year, both of whom made similar levels of cuts.

Last week, 21st Century Fox CEO James Murdoch was appointed chairman of Sky, prompting speculation the firm could be preparing a takeover of the European satcaster.