News Corp looks to shorter work weeks and ‘significant pay cuts’ to reduce cost base
One of Australia’s largest media outlets, News Corp, has said it is doing everything it can to preserve jobs within the organisation as consumer confidence and ad spend dries up due to uncertainty around the COVID-19 (coronavirus) crisis.
In order to protect jobs and reduce its cost base, News Corp said the executive team “will need to take a significant pay cut”, while other staff members will be presented with options including part-time work, nine-day fortnights, and taking additional leave. The organisation did concede that some job losses will be inevitable.
The company will also be directing staff to take leave over the Easter period.
Michael Miller, the company’s executive chairman, told staff in a note seen by Mumbrella that despite consumers increasingly turning to news organisations throughout this crisis “falling business confidence is impacting the advertising revenues of all media businesses”.
He also noted that many staff had reached out to him to see what impact business closures, travel and trade restrictions, and rapidly changing consumer habits would have on jobs at News Corp.
His goal, he said, it to minimise the impact of reduced revenue and retain as many jobs as possible.
“I want to assure you that my priority is to preserve as many jobs across the company as possible. But it is now clear that some job losses will be inevitable,” he said. “Together we need to move quickly to do everything we can to secure the health of our business and retain jobs.”
Further cost-saving measures include halting projects, all travel and entertainment ceasing, and events being called off. News Corp has also reduced the page count across its mastheads and reallocated copy sales and distribution.
It’s anticipated that the new working arrangements, to be discussed with staff in coming days, will continue until the end of May.
Miller wrapped up his note by thanking staff for their efforts, commitment and the vital role they play in keeping Australia informed.
Today has also seen Southern Cross Austereo (SCA) announce it is implementing pay cuts end enforcing leave.
I suspect these new work arrangements will give staff a taste for d better work life balance.
What happens when it’s over and workers from all companies want to keep their new arrangements?
This is a forced revolution in humanity and will go down in history as a turning point.
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On our teams call 99% of staff yesterday wished nothing more than being back at the office as soon as possible. Having to do everything remotely has slowed us down to the point where most are working 12-14 hour days to keep everything moving forward.
Work life balance certainly is out the window at the moment. But better that then doing nothing and facing an uncertain future.
Hopefully it means we’ll be better at interstate and international collaboration moving forward though, but at least at my agency most are bloody keen to get back into the office.
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I work in a media agency, although focusing on technology not buying media so I can manage my workload from home quite well. I’ll definitely be looking to work from home more consistently following this. Not exclusively but the reduction in travel time and extra time with family has been one of the few positives.
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You would think that with every set of eyes in Australia on the media for news, now would be the greatest time ever for brands to be booking space and building on their branding. Even if they are shut down, they will reopen, and at no other time will they ever have such a captive audience again.
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You would think that… But brands don’t have even weeks worth of savings to do that when stock isn’t moving.
Saving for a rainy day is looked down upon in corporations yet for some reason it’s expected that people save personally.
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