Mass job cuts at major media firm months after merger
Derek Rose |
The company that owns the Seven Network, Triple M and The West Australian is cutting hundreds of jobs amid a slump in TV advertising revenue.
Southern Cross Media Group said on Thursday it would cut 250 to 300 roles in a bid to save $145 million to $150 million.
The company, which merged with Seven West Media in January, said some of its business units had deteriorated more than anticipated in the fourth quarter, particularly its television division.
Southern Cross now expects to deliver earnings of $185 to $190 million in 2026/27, compared to its previous forecast of $200 million to $220 million.
“We must reset our cost base to meet current market conditions and capture the full benefits of scale across our trusted platforms for our audiences and advertisers, now and into the future,” said Rohan Lund, Southern Cross’s new chief executive and managing director.
“Unfortunately, this means saying goodbye to some talented colleagues who have helped build our business.
“We are deeply grateful for their contributions and we are committed to supporting them through this transition.”
Most of the staff to be laid off were mid- and back-office and corporate staff, Southern Cross Media Group said.
The company expects the restructuring will cost it around $20 million in the current year.
The company also expects to declare an onerous contract provision of $65 to $70 million related to its legacy television contracts.
The announcement appears to vindicate the Southern Cross shareholders who said the merger was a bad deal for their company.
AAP