Nine Entertainment has announced major job cuts, with an internal all-staff email from CEO Mike Sneesby stating that the company will be making a series of cuts that will affect 200 jobs, representing approximately 4% of the company’s total headcount.
In the email seen by Crikey, Sneesby said Nine was “not immune to economic headwinds which are impacting many businesses globally”. He cited “the loss of revenue from the Meta deal”, referring to the withdrawal of the American tech giant from its deals with Australian publishers, as well as “challenges in the advertising market”.
Sneesby claimed that the company remains “in a strong position”, with its business units maintaining a “leading position in their respective markets”.
In a subsequent Slack message (seen by Crikey) that was sent to staff by Nine’s managing director of publishing Tory Maguire, it was confirmed that of the anticipated 200 jobs affected, between 70 and 90 would be in the publishing division. Maguire said it was “clear that we need to evolve our operating model and reset the publishing business to create a sustainable future for the mastheads”.
A further email was sent by director of news and current affairs Fiona Dear, confirming that 38 roles would be lost in the television news and current affairs division, 12 of which were already vacant.
In May, Nine refused to deny reports first published in Crikey that cuts in the broadcast division of the company were imminent, saying it was “always evolving to best meet the needs of our business in order to remain the market leader”.
Crikey understands Nine staff were incensed by the decision, particularly to cut jobs from the profitable publishing division, which contributed 25% of the company’s earnings despite running on 21% of its revenue in 2023.
“Fuck Mike Sneesby,” one Nine staffer told Crikey.
“Glad we spent millions on a vanity broadcast,” they sarcastically added, referring to Nine securing the broadcast rights to the next three Olympic Games (including the upcoming Paris Games) for $305 million.
Another source, working at The Sydney Morning Herald, said there was “white hot anger” on the floor, particularly in the context of the ongoing public scandals Nine has recently faced.
“Staff don’t have confidence in Sneesby, and are frustrated at the weeks of damage Nine has done to the reputations of our mastheads, with the sleaze and mismanagement not of our making,” they told Crikey.
“We are also the profitable part of the business and are facing disproportionate levels of cuts compared to broadcast.”
Crikey understands Nine Publishing’s union committee has voted in favour of a no-confidence motion in Sneesby and the board.
It is also understood union committees at the ABC and Guardian Australia are discussing the publication of statements of solidarity with the Nine newsrooms.
The cuts follow disappointing results for Nine in its most recent half-yearly results, with net profits falling 40% amid an industry-wide downturn in advertising spending. Nine’s share price has fallen 31% in the past six months — it opened at $1.40 today compared to $2.03 on December 28.
Last week, Sneesby appeared in Parliament before the Social Media and Australian Society inquiry and said that the loss of the Meta funding would result in job cuts.
“Most certainly, if the deals aren’t renewed across the industry, we will see pressure on jobs,” he said.
