Hywood Warns Fairfax Cull Far From Over

Hywood Warns Fairfax Cull Far From Over

Fairfax chief executive Greg Hywood (pictured above) has warned that the staff cull from its newspaper business is not yet over.

On Wednesday the publisher announced 125 editorial staff would go from its national newsrooms, prompting a seven-day strike by staff.

However, Hywood used a speech at the Macquarie Connections Conference in Sydney yesterday that signalled it would be the end of cuts to editorial staff, however, “further technology, back office and support function cost savings are still to come,” he said.

A former journalist himself, Hywood said he respected his striking journalists for their stance, but added “passion alone” wasn’t enough to transform the business so it had a sustainable future.

In an interview with The Australian, Hywood said: “After this year, we will be spending $100 million on year on journalism, that’s a lot of money.

“But what we are doing is that we are making sure that our publications are profitable and by profitable that means sustainable.

“They are profitable now and they have to continue to be profitable. You have to look into the future right and look at revenue trends,” he said.

He added that despite the concerns from staff, readers and advertisers, only 10 per cent of staff cuts over the past five years had been from newsrooms, the rest coming from back office or support staff.

The other quandary for Fairfax bosses is its weekday print editions. At present they still bring in substantial revenues, however, dwindling circulations and readers moving to online suggest they won’t for too much longer. However, if Fairfax was to close the weekday print editions it would leave significant revenue holes which could lead to even more cost cutting.

It’s other problem is its older readers still want print, while younger readers have migrated online but are adverse to paying for content.

Fusion media analyst Steve Allen said many of the decisions the company was making was to shore up the share price and had little to do with editorial quality or the company’s longterm sustainability.

Speaking to ABC.net.au, Allen said: “But if they don’t want reliable articles — you know, things that are fact-checked, things that are investigated — and they won’t pay for the newspaper, and they won’t pay for the content when it’s put online, where are we all going to get accurate journalism from? Aside from the ABC?

“We are going to get to the point where we can’t trust what we’re seeing online because it could be shoddy, it could be made up completely.

“We are in danger in Australia of losing some revered and quality [newspapers] … we’ll be left with one, and that’s The Australian, the national News Corp masthead,’ he said.




Please login with linkedin to comment

Advertising Standards Bureau Greg Hywood Interior

Latest News

Google’s AI Image Generator Under Fire For “Historically Inaccurate” Images
  • Technology

Google’s AI Image Generator Under Fire For “Historically Inaccurate” Images

Google’s Gemini AI platform has attracted ire online for creating “historically inaccurate” images including black Vikings and a host of racially diverse Nazi soldiers, with some users claiming that Google was refusing to create images of white people. Google subsequently paused Gemini’s ability to create images of people following the news spreading online, saying it […]

GRG Celebrates 15 Years With Dynamic Leadership Appointments
  • Advertising

GRG Celebrates 15 Years With Dynamic Leadership Appointments

To celebrate 15 years in business, GRG is announcing a suite of strategic leadership appointments and unveiling its bold vision for the future, highlighting the company’s evolution into a fully integrated collective agency and launching innovative service offerings. Left to Right – Phil Tan, Jacqueline Balsamo, Bosco Anthony General Manager for GRG, Jacqueline Balsamo has […]

NRL Charges Into America With Massive Steeden In The Heart Of Times Square
  • Campaigns

NRL Charges Into America With Massive Steeden In The Heart Of Times Square

The NRL has officially landed in the United States, with all four teams firmly on American soil and an iconic OOH installation unveiled in New York’s Times Square this morning. The installation uses LED screens to project a giant Steeden football spinning on its axis in the heart of Times Square. Behind the ball, a […]

Cannes In Cairns Welcome & Closing Parties, Side Events Revealed!
  • B&T Exclusive

Cannes In Cairns Welcome & Closing Parties, Side Events Revealed!

From reef excursions to VIP marketer dinners and big brand activations such as Samsung Haus, the eagerly anticipated Cannes in Cairns Extras have been revealed. Secure your Cannes in Cairns tickets now! Attendees at this year’s Cannes in Cairns, presented by Pinterest, are in for a treat as the extras are back — bigger and […]

“Scandalous Gatekeepers” – SBS And ABC Say Big Tech “Threatened” Them With App Removal Unless They Paid Eyewatering Placement Fees
  • Media

“Scandalous Gatekeepers” – SBS And ABC Say Big Tech “Threatened” Them With App Removal Unless They Paid Eyewatering Placement Fees

If anyone is a fan of drama then we recommend you head over to the Parliament of Australia website where a heated battle is ensuing between FTA television and streaming platforms.  FTA television networks including ABC, SBS, Seven, Nine, and Network 10 are appearing before the Environment and Communications Legislation Committee today, to argue that […]

Livewire & Wildfire Sign Exclusive Global Partnership
  • Media

Livewire & Wildfire Sign Exclusive Global Partnership

Livewire, the global gaming marketing and gametech company, has signed an exclusive deal with Discord marketing specialist Wildfire to sell its inventory on the community-driven communications platform. The partnership with Wildfire, signed in early February, enables Livewire to reach Discord’s communities of superfans and target gamers where they choose to meet and engage. The deal […]

TEAM LEWIS Sets New Record For Community Campaigns Supported In A Year
  • Marketing

TEAM LEWIS Sets New Record For Community Campaigns Supported In A Year

TEAM LEWIS has achieved a new milestone in philanthropic funding. It has now supported over 1,500 community causes around the world. In the past three years, the initiative has channelled millions of pounds in cash, donated time and resources. Every year, the unique scheme incentivises colleagues to donate £1,000 of company cash to a community […]

Thinkerbell Asks Travis Kelce If He Feels Like A Tooheys Or Two
  • Campaigns

Thinkerbell Asks Travis Kelce If He Feels Like A Tooheys Or Two

NFL legend Travis Kelce has touched down in Sydney and has been welcomed to the team at Tooheys with a cheeky message via Thinkerbell. The NFL player made global headlines this month as part of the Kansas City Chiefs’ victory at the Super Bowl in Las Vegas. Many Aussies’ social feeds have since filled up […]

Image lead story Domain CMO Rebecca Darley: Tealium’s CDP Allowed Us To Personalise At Scale
  • Partner Content
  • Technology

Domain CMO Rebecca Darley: Tealium’s CDP Allowed Us To Personalise At Scale

Domain’s chief marketing officer (CMO), Rebecca Darley, said that without Tealium’s customer data platform (CDP), her business would not have been able to achieve the personalised marketing success that has made it one of the leaders in data-driven marketing in Australia. Speaking at an exclusive breakfast event hosted by B&T at Sydney’s swish harbourside restaurant, […]

Partner Content

by B&T Magazine

B&T Magazine
Slew Of New Hires & Promotions At DDB
  • Advertising

Slew Of New Hires & Promotions At DDB

DDB Group Melbourne has today announced exciting changes to its creative team with the promotion of Becky Morriss to creative director and new hire Sarah Tonner as creative services & traffic manager. Lead Image: Becky Morriss & Sarah Tonner Recently celebrating her 11 years with DDB, Becky began her career as a designer, evolving into […]

Man of Many Partners With NBC Universal For Red Carpet ‘Argylle’ Premiere
  • Campaigns

Man of Many Partners With NBC Universal For Red Carpet ‘Argylle’ Premiere

Man of Many in partnership with NBC Universal, stages an atmosphere of elegance for Sydney premiere of ‘Argylle’ film. Independent lifestyle publication digital publication, Man of Many, has shown its innovative approach to event management in the premiere of ‘Argylle’ at Hoyts Cinema in Sydney’s entertainment quatre. Over 400 guests were included in the films […]