Southern Cross Austereo (SCA) has made sweeping cuts to its workforce a week ahead of its half-yearly results announcement.
SCA chief executive John Kelly told staff about the redundancies in a company-wide email yesterday.
Kelly said that “challenging economic conditions and structural challenges” meant that the company had to find further cost savings to position the business for possible growth.
“Over the past year we have begun to see a build in momentum leading to improved results through a combination of improved across-the-board performance and a reduction in our operating cost base. However, to maintain this momentum and further position the business for sustainable growth, it is essential that we now reduce our cost base wherever possible,” Kelly’s email read.
“Accordingly, we are required to make further cost reductions across areas such as discretionary spend, programming, corporate overheads, and regrettably our workforce. This means there will be further redundancies within the company.”
SCA declined to comment on the scale of job cuts, but sources with knowledge of the redundancy program have told B&T the plan is to cut 8 per cent of the workforce, which is around 140 staff.
Departments that are in the firing line include marketing, an internal media unit, TripleM’s Night Shift and some regional breakfast shows. Triple M mid-dawn announcer Luke Bona is one of the on air presenters who has left.
The redundancies cap an eventful and challenging year for Southern Cross.
Last year the business let go of a handful of senior executives, including head of distribution and audience growth Chris McWilliams.
In May, Anchorage Capital Partners, in partnership with radio rival ARN, pulled the pin on a $250 million bid to buy Southern Cross, leading to SCA’s share price tanking by nearly 50 per cent.
In December, Southern Cross sold its regional TV licenses in Queensland, NSW and Victoria to the Paramount-owned Network Ten.
The group has been looking to cut costs and improve operational efficiencies after posting a 1 per cent drop in revenue to $499.4 million and a 49 per cent decline in net profit in FY24.
Next Thursday, Kelly will present Southern Cross’ half-yearly results to investors.
