Nexstar Media Group, one of the largest television station owners of local ABC, CBS, FOX, and NBC stations in the United States, is implementing layoffs in its broadcasting and sales divisions. The company aims to reduce operating expenses and “accelerate collaboration” as it navigates the evolving media landscape.
Nexstar, which reaches 220 million people through its 200 owned or partner stations in 116 U.S. markets, confirmed the layoffs in a statement on Wednesday. The company emphasized that the cuts will affect less than 2% of its workforce and are necessary to adapt to the “unprecedented change in the media industry.”
“While it is difficult to make these sorts of changes, they will impact less than 2% of our workforce and allow us to focus on areas of growth for our viewers, partners and customers,” Nexstar stated to The Wrap. “We are committed to managing through this period of unprecedented change in the media industry so that Nexstar continues to thrive for years to come.”
Streamlining Efforts and Recent Layoffs
This latest round of layoffs follows a similar move by The CW, which is majority-owned by Nexstar. The network recently laid off over two dozen employees in its scripted programming and PR divisions, reflecting a shift towards sports and unscripted content.
Focus on Efficiency and Growth
Nexstar’s cost-cutting measures appear to be paying off. During its third-quarter earnings report, the company reported a reduction in operating losses of $119 million year-to-date, exceeding its target of $100 million by the end of 2024.
Nexstar president and COO Mike Biard emphasized the company’s commitment to “focus on initiatives that more directly impact our viewers, partners and customers as we pursue priorities that represent our best long-term opportunities.”
Market Reaction
Despite the positive earnings report and the company’s efforts to streamline operations, Nexstar’s shares fell 2.4% during Wednesday’s trading session. This may reflect investor concerns about the broader media industry and the challenges facing traditional television broadcasters in the streaming era.
Looking Ahead
Nexstar’s layoffs underscore the ongoing challenges faced by media companies as they adapt to changing viewer habits and the rise of digital platforms. The company’s ability to effectively manage costs and identify new growth opportunities will be crucial to its long-term success.