Nine Entertainment has announced a wave of devastating job cuts with over 200 employees set to be eliminated across its struggling TV network and metro newspapers.
The Australian’s media writer Sophie Elsworth says the Nine Network is being “very careful” about how they respond to allegations of a toxic work culture.
Kerri-Anne Kennerley has accused her former employer Nine of having an ‘entrenched’ culture of bullying and intimidation.
“What I have been told, from numerous sources, is that dozens of women – females, both former and current staff – are making complaints.”
Last financial year, Nine’s profits tumbled about 38 per cent to $195 million amid declining advertising revenue.
Nine’s chief executive Mike Sneesby announced the job cuts to staff on Friday morning as part of a $30 million cost-cutting plan for the business that will eliminate 5 per cent of the company’s total work force, mostly from its metro newspapers and the Nine TV network.
“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,” Mr Sneesby said in a statement.
Nine will eliminate five per cent of the company’s total work force. Picture: Nine.
Mr Sneesby attributed the job cuts to the termination of a commercial deal with Meta, the owner of Facebook and Instagram, as well as a sluggish advertising market.
The nixed Meta deal – which compensated Australian news publishers for content used on social media – was a lifeline for struggling networks and newspapers due to the decline in free-to-air linear broadcast audiences and shrinking newspaper circulations.
“These are tough decisions and I acknowledge it will be an uncertain period for some of you. It’s important to reiterate that Nine remains in a strong position,” Mr Sneesby said.
“All of our business units are either completely digital or have rapidly growing digital revenues – and each one maintains a leading position in their respective markets.”
The cuts will largely impact Nine’s TV network and metro newspaper divisions. Picture: Nine.
Nine’s dramatic cuts come as its TV arm has pinned its ad revenue hopes on the upcoming 2024 Paris Olympics, promising viewers two 24-hour free-to-air channels and comprehensive streaming coverage of the games.
About 90 staff from Nine’s newspapers, which includes mastheads like the Sydney Morning Herald and The Age, are understood to be in the firing line.
In the broadcast division, 38 staff from the news and current affairs team, which encompasses flagship programs like 60 Minutes and 9News, will be axed.
The job cuts also fall mere months after former news boss Darren Wick left Nine after a complaint was lodged by a female employee relating to inappropriate conduct.
Nine has pinned its revenue hopes on its expensive Olympics coverage. Picture: Nine
The claims against Mr Wick opened a Pandora’s box of alleged inappropriate workplace behaviour in the Nine news room as part of an “entrenched” culture of harassment.
Meanwhile, former Nine chairman Peter Costello stepped down from the top job earlier this month after an alleged altercation with a journalist from The Australian at Canberra Airport which was recorded on a mobile device.
Nine’s latest woes follow similar cost cutting measures at rival publisher Seven West Media.
Earlier this week, Seven sacked its entire executive team, leaving just Chairman Kerry Stokes and chief executive Jeff Howard as the boardroom’s “sole survivors”.