Sky, the UK broadcaster owned by Comcast, is set to reduce its workforce by hundreds of roles as the company shifts its focus from launching new products to improving existing services in a competitive streaming market.
Sources familiar with the plans say around 900 positions will be affected, with approximately 600 coming from Sky’s UK operations in west London. The remaining roles could be reassigned within the company, depending on the results of a consultation process that started this week. Staff members in technology-oriented teams are expected to make up a significant portion of the layoffs.
Workforce Reductions Reflect Industry Transition
Sky currently employs roughly 23,000 people in the UK but has been cutting jobs steadily over the past few years. Since 2023, around 3,000 positions have been eliminated, particularly in traditional areas such as satellite installation, as the company shifts toward broadband-based TV services.
Under Comcast, Sky expanded its product range, introducing Sky Glass, a smart TV, and Sky Stream, a streaming set-top box. Together, these products now drive more than 90% of new subscriptions. A source close to the company explained that the period of heavy product development is largely over, and the company’s attention is now on refining and improving existing offerings.
New Strategy: Content and Digital Investment
Sky has confirmed it will prioritize enhancing service quality and investing in digital-first experiences. The company plans to bolster its content production, including at the newly developed Sky Studios in Elstree, to compete with major US streaming services.
The broadcaster faces an additional challenge at the end of 2024, when it loses exclusive rights to HBO programming such as The White Lotus and Game of Thrones. However, Sky has secured a long-term deal with Warner Bros Discovery, ensuring access to HBO content via the HBO Max streaming platform.
Financial Position
Despite the job cuts, Sky remains profitable. In 2024, the company reported a pre-tax profit of £256 million on revenues of £11.2 billion. Analysts suggest that streamlining operations while focusing on content and service improvements could help Sky maintain its competitiveness in a rapidly evolving television and streaming landscape.
