Foxtel cuts 200 jobs, stands down 140 team members as it ‘accelerates transformation’
200 Foxtel workers have been made redundant and a further 140 stood down until the end of June as the subscription TV business struggles to survive the economic impacts of the coronavirus (COVID-19) pandemic.
An email sent to all staff by CEO Patrick Delany said the business was attempting to accelerate the transformation it has been embarking on for the past two years.
Foxtel’s relaunch hasn’t happened quickly enough, says Delany, and things will need to be accelerated to survive COVID-19
Calling the week the “toughest in Foxtel’s history”, Delany said serious changes were needed to keep the business strong for the future.
“Restructuring and changing the way the company works is not an easy thing to do at any time. But with the impact of COVID-19, the only option is to act now to ensure we ride out the current situation and remain strong to compete with local and global media companies,” read the email.
Delany went on to say all impacted staff had been told by video or phone, lamenting the restrictions which made it impossible to deliver the news in person.
“Australia has experienced tough times before. Most recently that was during the global financial crisis in 2009. We know that in tough times Foxtel becomes a great source of comfort to people at home who want to be informed and entertained. Right now, with Australians isolating themselves at home, our customers need us more than ever,” said Delany.
“The government COVID-19 restrictions are however seeing major challenges for us including the broadcast and streaming of live sport. And looking ahead, the economic outlook for Australia is deteriorating and our continued transformation will become even more important.”
A number of the redundancies have come from the Fox Sports and Kayo businesses. The NRL has been postponed as has the AFL. The 2020 Tokyo Olympics have been postponed until 2021 and Rugby Australia was forced to halt all its domestic competition plans.
Sadly my time at Fox Sports has also come to an end.
Has been a rough trot for Aussie rugby but very grateful to get to know so many talented, passionate and kind people.
If anyone has a job or copy of Jonah’s please let me know so I can school the fresh faced @ChristypDoran👍🏻 pic.twitter.com/9xrHJfywtg
— Sam Worthington (@samworthingtown) April 7, 2020
“What the team at Fox Sports have all done to reinvent our programming so our customers stick with us, has been extraordinary. And the ratings tell us customers are engaged with our classic matches, documentaries, pop-up channels and live shows, and value what we are producing,” said Delany.
“However, we need to be prepared for a scenario in sport where season starts are delayed further. It is clear all codes are struggling with significant financial challenges and we should anticipate that the future shape of sport in Australia will be very different.”
All stood down workers will be able to use accrued leave, draw on leave in advance and be given two additional weeks of pay. Foxtel is not entitled to the Job Keeper scheme.
All workers taking redundancy will be given their full entitlements and a further group of workers has been asked to take on reduced hours. Non-essential expenditure has ceased, as has hiring, casuals have been let go and the business will shut down over Easter for non-essential staff.
Delany ended the email by asking staff to take Easter to refresh and focus on their health. He also advised all staffers that they were able to access an Employee Assistance Program (EAP) if they needed support.
“Foxtel remains a great Australian company and a part of life for millions of Australians. Our service has never been more important as people spend an extended period at home. To be there for them, as difficult as it is, we must continue to transform Foxtel and ensure we come out the other side even more important than we are now,” said Delany.
This is the time to shine for any streaming / pay service… If they cannot sort out their model now – they are in big trouble.. You cannot charge people $10 a month access HD – in this day and age… and charging people for a monthly fee for “airplay or chromecast” is idiotic…. Foxtel is too top heavy – needs to focus on its core business – content.
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Foxtel were and are structurally challenged – they have been moving the deck chairs for 18 months after failing to get into streaming in any meaningful way. They have an old platform and old rules governing their business……more to come I expect
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If only, at some time in the past decade, someone at Foxtel had thought to develop a business model that would work rather than spending their time fighting change.
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Foxtel has been already in a collapse as they haven’t done any innovative change since the on-demand products came in. If they keep behaving as we were in 2000s, they won’t exist in 10 years. This is totally regardless of the covid-19.
The frequency of their STB/OTT release is at least 1 year which is crazy. Impossible to survive in today’s world.
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Foxtel’s operation is outdated and SO expensive. The main reason people get Foxtel is sport – full stop. Just about everything else on offer is outdated or uninteresting. Too much rubbish. Stan, Netflex, Disney are SO much cheaper and offer better products. And, NO ADS! Wake up Foxtel. If you want to be relevant and stay in the game, join 2020 or disappear
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“…Foxtel remains a great Australian company,”?
Hmm…where exactly are their call centres located again?
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I reckon the fox sports channels should be cut back without dedicated channels. Back to simple fox sports news, 1, 2, 3. Etc etc.
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Failed to get into streaming in a meaningful way? Kayo seems pretty strong.
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Correct. Foxtel wouldn’t have existed without live sports. Movie channels are not the reason people subscribe.
The full package is over $100\month. As an example Netflix is only $9.99\mth. With a good range of programs the only real difference is the sport channels.
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We got Netflix 6-months ago. On Foxtel we watch the News 7 (free to air) and a couple of programs on UK TV. All up probably 20% of our viewing time is Foxtel. I understand the platform is old but for many like me the rot started with the loss of the EPL to Optus. Overall the Foxtel service is 2 -10. We’ll certainly be getting rid. Oh and it’s ridiculously expensive. Sorry for the job losses but I fear Foxtel’s days are numbered. One time Monopolies usually don’t survive competition they become lazy, complacent and arrogant.
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There local sports programming shows have jumped the shark.
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The local sports programs have jumped the shark.
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