Nine’s $100m haircut: Union braces for job cuts
Media union the MEAA has reacted to Nine’s announced plans to make $100m in savings over the next two years, warning that large scale job cuts would be counterproductive.
After reporting flat revenue and a first-half profit drop of 29% on Tuesday morning, Nine’s acting CEO Matt Stanton said the company plans to cut $100 million in costs over two years, promising a “sharper focus on commercialisation” across the business.
In addition, Stanton flagged Nine’s projected $50 million in savings for the current financial year are on track to surpass expectations – with the revised savings forecast for FY25 between $60 and $70 million.
Nine’s acting CEO Matt Stanton, and acting chief financial officer, Graeme Cassells, at Nine’s investor call
The market responded favourably, with Nine’s shares rising by 4%, to see the company valued at $2.7 billion – its highest evaluation since last March.
Given that FY25’s savings feature over 200 redundancies — resulting in a five-day strike by Nine Publishing staff on the eve of the Paris Olympic Games — the Media Entertainment & Arts Alliance is hoping the next few rounds of saving don’t also come at a steep human cost.
MEAA’s communications director Mark Phillips tells Mumbrella the union is waiting to see concrete proposals from Nine as to the nature of the cost savings.
Nine Publishing on strike, 2024.
“The key to a successful media business is investment in quality, independent journalism,” Phillips said. “You can’t cut your way to growth.”
MEAA’s acting director, Michelle Rae, said, after last year’s strike was resolved, “it’s clear from the massive public support for the journalists while they were on strike that readers want access to quality journalism and the boards of media companies need to find a new business model – the public does not except that job cuts is the solution.”
Phillips told Mumbrella that “when it comes to implementing savings, Nine management must genuinely consult with MEAA about any cuts that will impact on its journalists and their roles.”
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Nathan Jolly is the Features Editor at Mumbrella. He joined the team in July, 2023.
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In the face of yet more redundancies I don’t see how I can justify a subscription to the Sydney Morning Herald any longer.
Commercialisation of content seems to trump real journalism, and shareholder dividends appear to be more important than those who rely on Nine to pay their bills.
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Mainstream media is dying
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