Reelz Channel, the start-up cable station that really doesn't do all that much apart from promoting ongoing films, has cut its workforce severely with layoffs of more than 40 people in its L.A. offices, the L.A. Times said today.

The Minnesota-owned station canceled its ongoing industry show, "Dailies." It still employs about 125 workers.

Reelz has been hurt by the company's business plan, the Times said. Unlike a lot of cable channels, Reelz made a strategic decision to depend solely on advertising, and not cable TV subscriber fees, for revenues. The strategy was adopted to encourage cable operators to carry the channel. But the economic downturn is severely crimping advertising spending, leading to an economic crunch at the channel.