Up to 300 jobs will be eliminated across Southern Cross Media by the end of June as the newly merged media giant moves to slash costs and navigate a weakening advertising market, as reported by multiple media reports.
The company, formed through the merger of Seven West Media and Southern Cross Media, confirmed the redundancies in a statement to the ASX.
The cuts are expected to affect employees across the business, with up to 200 roles reportedly set to disappear from Seven Network operations alone in the coming days.
Rohan Lund, Chief Executive, Southern Cross Media said, “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.”
He added, “Unfortunately, this means saying goodbye to some talented colleagues who have helped build our business.”
Newsroom impact
According to reports, staff within Seven's television newsroom have already been informed that their roles will be affected.
The Age reported that several employees have been advised their positions are under review, while some staff at West Australian Newspapers have been asked to express interest in voluntary redundancies.
The company has not disclosed which specific divisions will bear the brunt of the cuts.
“Today’s ASX announcement outlined the scope of our operational review,” a spokesperson said.
“To respect our team’s privacy, we will not be commenting further.”
Merger pressure
The job losses come just months after the completion of the merger between Seven West Media and Southern Cross Media.
The deal was initially pitched as a way to create scale and generate significant operational savings. Southern Cross Media now says challenging advertising conditions have pushed revenues around 2.5% below expectations.
As part of a broader restructuring programme, the company aims to deliver up to $150 million in savings.
The business said the changes are designed to "remove duplication, streamline and automate our processes."
“The cost reduction program will create the leaner, more flexible, cost base required for the Group to be competitive,” the company said in its ASX statement.
Industry struggles
The cuts reflect wider pressures facing Australia's traditional media sector.
Free-to-air broadcasters continue to battle shrinking audiences, shifting viewing habits and growing competition from streaming platforms and digital advertising giants.
Networks are increasingly being forced to reduce costs while investing heavily in content capable of attracting live audiences, particularly sport.
Southern Cross Media has already signalled interest in future sports rights opportunities, including the National Rugby League, as broadcasters compete for one of television's few remaining audience strongholds.
Uncertain future
The merger brought together some of Australia's most recognised media assets, including 7NEWS, 7news.com.au, The West Australian, The Sunday Times, The Nightly and Southern Cross Media's radio operations.
Kerry Stokes, the long-time leader of Seven West Media, did not take up a role in the merged company when the transaction was completed earlier this year.
For hundreds of employees, however, the focus is now on what comes next.
With the first wave of departures expected by 30 June, Southern Cross Media's drive to create a leaner organisation is set to reshape one of Australia's largest media groups.