Samantha Donovan: More job cuts in the media industry have been announced today. Nine Entertainment, the owner of The Age, Sydney Morning Herald, the Australian Financial Review and Nine News has announced its axing 200 jobs due to what it’s calling economic headwinds. It says the restructure is necessary to move the business further into the world of digital media. But some analysts say that could come at the cost of in-depth journalism. Here’s our business reporter, David Taylor.
David Taylor: Nine Entertainment CEO Mike Sneesby sent an email to staff this morning saying 200 jobs had to go. Media commentator Stephen Mayne says it’s always difficult for staff.
Stephen Mayne: Everyone knows that the roof is coming down on them and they’re worried that they’re going to be next. So look, it’s really morale sapping to have those sorts of emails go around. Then you get the Hunger Games scenario of who’s out and who’s going to survive.
David Taylor: The company has been rocked by a series of recent scandals, including complaints made against former news executive Darren Wick, followed by the sudden resignation of former chairman Peter Costello after an alleged altercation with a reporter. Mike Sneesby blamed a weak advertising market and the end of the group’s contract with Meta, owner of Facebook and Instagram, for the job cuts.
Stephen Mayne: So across the board, their revenues are falling and they’re having to cut costs.
David Taylor: Up to 90 jobs are expected to be cut from the publishing division and a further 38 from the News and Current Affairs broadcasting division. And 12 of these roles are already vacant.
Stephen Mayne: The secure, big, six-figure old media job in the commercial world is becoming more and more difficult to sustain.
David Taylor: Nine Entertainment is not alone in shedding staff as the industry evolves into an increasingly digital world. Roughly 150 jobs are on the chopping block at Seven West Media, while News Corp Australia says it will make a number of roles redundant as the media company undergoes one of its most significant restructures in more than a decade. The industry is trying to cut costs, says Stephen Myne, in the face of declining revenues.
Stephen Mayne: So these things often happen towards the end of June because you’ve set the budgets for next year and you also want to book the restructuring and redundancy costs in your end of year financial statement. So we’ve seen a flurry of job losses in the second half of June.
David Taylor: Nine CEO Mike Sneesby told staff this morning that the company was “not immune to the economic headwinds impacting many businesses globally” and would “continue responsibly managing costs through the cycle”. CreditorWatch tracks the financial performance of thousands of businesses across the country. CEO Patrick Coghlan says any business reliant on advertising or consumer spending more broadly is under financial pressure.
Patrick Coghlan: There’s just reduced spend out there and your costs have gone up so there’s a significant squeeze being put on all businesses at the moment.
David Taylor: Do you see an end in sight at any point soon?
Patrick Coghlan: Look I’m always looking for green shoots and positive outcomes to talk about but realistically not this calendar year, no.
David Taylor: And that worries Stephen Mayne, in terms of what Australian media can dish up for millions of news and current affairs consumers.
Stephen Mayne: Well it’s a big threat for democracy. There’s already lots of news deserts across Australia particularly after News Corporation stopped printing a hundred different titles shortly after the COVID pandemic hit in 2020. It’s a real worry for democracy.
David Taylor: And late today staff of Nine Entertainment in conjunction with the union passed a motion of no confidence in boss Mike Sneesby and its board expressing their dismay over the widespread job cuts. Investors though sent Nine Entertainment shares up over one percent.
Samantha Donovan: David Taylor reporting.