The free to air TV industry and media industry blood bath continues, yesterday it was the Seven West Media Network that was axing senior management, now news has broken that Nine Entertainment and Nine Media are set to axe 200 employees as consumers flock to streaming and media Companies struggle to generate revenue after Meta pulled the plug on funding Australian media organisations.
The axing comes days after the Companies Chairman Peter Costello quit after deliberately pushing a journalist out of the way who simply wanted to ask him a question about the ongoing investigation into the culture at Nine following the sacking of the Companies News Director.
The latest job cuts are set to be across their publishing, digital and broadcasting divisions, with CEO Mike Sneesby blaming “recent market events” for the widespread axing of staff.
In an email to all staff on Friday morning, Nine chief executive officer Mike Sneesby said the company must cut jobs to “continue to responsibly manage costs through the cycle” and look at ways to continue to reduce costs.
The business is plagued by sexual harassment claims, bullying and inappropriate behaviour by past and present staff which has prompted an external investigation.
Sneesby told staff on Friday: “An operational review of these businesses is underway, and we will update you with further details about what this means for you and your teams in the coming weeks.
“From our nationwide team of almost 5000 people, around 200 jobs are expected to be affected across Nine including some vacant and casual roles not being filled.
“Where possible, we will look for opportunities to redeploy our team members who are impacted, and we will support them throughout the process.”
Mr Sneesby also told staff “these are tough decisions and I acknowledge it will be an uncertain period for some of you.”
Nine are the Olympic broadcaster in Australia after paying $305m for exclusive rights to the next five Olympic Games.
ChannelNews understands that the master sponsor contracts have sold out, but the network is struggling to attract second tier sponsors with shortfalls set to be carried forward, with some insiders claiming that by the time that the Brisbane Olympics happens Nine Entertainment could be “wallowing in losses” on the deal.
The media Company claims that Meta’s decision to abandon its commercial deals under the News Media Bargaining Code has taken a financial toll on this business, similar to other Australian media companies.
Nine CEO Mike Sneesby
He did not address the issue of why the Company put all future revenues in digital via third parties, instead of building out direct engagement with consumers.
Nine publishing director Tory Maguire, who heads up The Australian Financial Review, The Age, The Sydney Morning Herald, Brisbane Times and WAtoday, told staff 70 to 90 jobs will go in his division.
“This week … the deal with Meta is over and the significant revenue incoming under that deal has ceased,” she said.
“While we are encouraged by our constructive conversations with the Federal Government about enforcing the code, the only thing currently certain is that we don’t have an ongoing deal with Meta.
Shares rose on the news and were trading at $1.40 per share at 12.30am Friday, up 0.7 per cent.
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