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Fairfax Media to axe 125 editorial jobs as part of $30m restructure

Fairfax Media is set to axe 125 editorial jobs – more than a quarter of the newsroom – as part of its restructure announced a month ago.

An email to staff from Sean Aylmer, Fairfax Media’s Australian Metro Media editorial director,  announced the cuts, revealing 125 full-time equivalent roles will be axed with a voluntary redundancy program looking to achieve the reduction in staff. The company will also readically scale back its use of freelancers.

Staff have been given a deadline of next Tuesday to volunteer for redundancy.

“We will shortly open a voluntary redundancy program to achieve a reduction in staff of up to 125 FTEs, which includes the approximate 10 FTEs that have left the newsroom since this process began last month. While we will be looking across all parts of the newsroom, at the end of the redundancy program we expect there will be significantly fewer editorial management, video, presentation and section writer roles,” the email said.

Fairfax Media is also set create a news director position while it replaces the AM and PM editors with news editors. The digital editor “is being refocused” while new roles for national head of video, a national creative director and a new head of travel and food are being created.

“We propose to call for expressions of interest in the altered roles from tomorrow. Subject to applicants being available, we would like interested staff to nominate themselves by Tuesday next week (9 May 2017). If needed, an interview process will take place next week with all appointments made by close of business, 12 May 2017,” the email from Aylmer said.

Fairfax Media is set to cap its rate for all contributors to The Sydney Morning Herald, The Age and The Australian Financial Review, while all third-party deals will be reviewed.

“Initially we will undertake an audit of all contributors, and subject to contractual arrangements, shift all contributors to a pay rate based on per article, rather than per word. There has been general consensus on this change,” Aylmer’s note said.

“All third-party deals are being reviewed, and we expect to make significant savings from our third-party arrangements including syndication deals.”

The email also revealed Fairfax will be “significantly” reducing the use of the casual workforce across The SMH, The Age and The AFR which will provide an estimated saving of around $3m a year.

The details of the job cuts follow on from Fairfax Media announcing a restructure early last month,  with the publisher proposing major structural editorial changes which will help it achieve $30m in annual savings.

The union representing journalists the Media Entertainment and Arts Alliance has said it is appalled at the decision.

MEAA CEO Paul Murphy said: “None of the other parts of the Fairfax business are worth anything without the journalism and yet it is the journalism that Fairfax always cuts.

“This will only undermine and damage its mastheads further, alienating its audience and leaving the editorial staff remain have to work harder and harder to fill the gaps. This is a dumb decision.”

News Corp is set to also make a number of redundancies in coming weeks, having revealed plans early last month to slash jobs across its editorial operations in a move which will see most photographers and many subs made redundant.

The email from Sean Aylmer in full:

Broadly, we will achieve the nominated $30 million in savings in four ways:

Contributors – We will move to a capped rate model for all contributors to the SMH, Age and AFR. Initially we will undertake an audit of all contributors, and subject to contractual arrangements, shift all contributors to a pay rate based on per article, rather than per word. There has been general consensus on this change.

Third-party deals – All third-party deals are being reviewed, and we expect to make significant savings from our third party arrangements including syndication deals.

Casuals – We will significantly reduce the use of the casual workforce in the three main mastheads and estimate savings of around $3 million per year.

Reduction in full-time and part-time staff – We will shortly open a voluntary redundancy program to achieve a reduction in staff of up to 125 FTEs, which includes the approximate 10 FTEs that have left the newsroom since this process began last month. While we will be looking across all parts of the newsroom, at the end of the redundancy program we expect there will be significantly fewer editorial management, video, presentation and section writer roles. Further, we note that the voluntary redundancy process will provide a procedure for employees in these areas to potentially be redeployed if available and suitable positions open up elsewhere. One outcome of the consultation process is that we have changed the top-level management structure.

The new or substantially altered roles are: Creation of a news director Reduction in state based topics The AM and PM editors are being replaced by news editors The digital editor role is being refocused Creation of a national creative director and a national head of video Creation of a new head of travel and food We propose to call for expressions of interest in the altered roles from tomorrow. Subject to applicants being available, we would like interested staff to nominate themselves by Tuesday next week (9 May 2017). If needed, an interview process will take place next week with all appointments made by close of business, 12 May 2017.

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