Foxtel redundancies follow US$11m loss

Foxtel will cut jobs after recording an US$11m loss in the first quarter of 2016 and the decision to close streaming service Presto.

Yesterday’s financial results for News Corp revealed that the Presto decision cost the company US$21m, with Foxtel reporting a US$11m loss for the quarter, which includes write-downs by News in the value of “finite-lived tangible assets” of the company.

Peter Tonagh, Foxtel CEO, confirmed “a number of structural changes” to the business; however, he did not divulge how many staff had been impacted.

“Foxtel’s strategy is to focus its resources on acquiring the best content from Australia and around the world, delivering an exceptional customer experience, and investing in great technology and products,” said Tonagh.

“To help achieve this strategy we have conducted a review of aspects of our business to ensure that Foxtel is as efficient and agile as possible. In particular, we have looked to simplify structures, clarify reporting lines, remove areas of duplication and overlap, and cease activities that do not assist in advancing our strategy.

“As a result of this review, we have determined that a number of structural changes need to be made in the business and this has resulted in some employees being informed this week that their positions will be made redundant.

“It is always difficult when friends and colleagues leave a business in this way. We are talking to all affected employees and where there are redeployment possibilities we will explore them, otherwise we will provide career transition advice and support.”

The news of the job cuts follows on from News Corp Australia seeking to make $40m in cuts from its Australia operation as advertising continues to shrink, with modest redundancies to form part of the cuts.