Pacific Magazines reveals 11 redundancies as it looks to further reduce cost base before 30 June
Pacific Magazines is set to reduce its cost base before 30 June, with 11 redundancies planned and consultations underway with sub-editors across all brands about a proposal to outsource their work to external sub copy business, Pagemasters.
In an email addressed to staff obtained by Mumbrella, CEO Gereurd Roberts told the company consultations had commenced with sub-editors about a proposal which would see a customised subbing solution build for Pacific Magazines, involving staff with expertise in the categories where the brands operate.
He said the proposed move would mirror Pacific Magazines’ current three phase sub-editing process and would “ensure strict adherence” to brand guidelines.
“Should the proposal proceed, a small team of copy directors/sub-editors will remain at Pacific, while some of our sub-editors may be employed by Pagemasters. We will keep you updated as these discussions progress,” he said.
The email also confirmed 11 other positions had already been affected across the business.
Mumbrella understands the first set of redundancies involved staff advertising and digital, as well as the fashion picture desk.
“All of these staff members were spoken to directly earlier today, and we are currently consulting with them to transition as many as possible into new opportunities within the business,” Roberts said.
He noted the changes were part of a broader plan to reduce Pacific Magazines’ cost base to a target before 30 June as part of the publishing company’s direction and strategy for the next financial year.
“Many of the decisions have not been easy to make, and I know they will be difficult for many of you also. They are in no way a reflection of the tremendous work, commitment and care these team members have always shown,” he told staff.
“They were taken only after all options were thoroughly considered, and once determined, it was imperative that we acted now to ensure we stayed well ahead of the challenges that many industries face, including ours.
Roberts: “Many of the decisions have not been easy to make, and I know they will be difficult for many of you also”
“These changes will ensure that we continue to progress – that we have a profitable, financially secure business that is positioned to take advantage of all the opportunities that will present themselves in the future. Our print audiences are again in growth, as the latest readership figures showed, and we remain one of the fastest-growing digital businesses in the country.
“The initiatives announced today will ensure that our business remains strong also, and that moving forward we have the capacity and capability to invest in building our brands and products, extending those consumer connections,” he said.
Roberts said he would take all staff through the business’ vision and strategy for 2018, known as ‘Reimagine’, in the next staff meeting.
Since FY13, Seven West Media’s Pacific Magazines has reported a decline in revenue year on year.
At the end of the FY16, Pacific Magazines reported $201.2m in revenue, a decline of 8.6% from FY15’s $220.1m
Seven West Media FY16 report shows Pacific Magazines’ revenue decline
The latest news comes seven months after 11 positions across the sales team were made redundant, as part of a commercial re-structure announced at the end of October, which proposed a ‘total network approach.’
Pacific Magazines is not the first publishing company to look to outsource sub-editors.
Despite strikes and attempts to fight the axing of the subs, Fairfax pushed ahead with the plans in 2012, with 56 full-time production staff moving from Australia to New Zealand.
The sub-editors were initially moved to Pagemasters before moving to a Fairfax subbing hub.
In June 2015, Mamamia posted job adverts looking for subeditors in India and Bangladesh.
Earlier this year, News Corp announced it would slash jobs across editorial operations which would lead to a drastic reduction in sub-editing staff.
Pacific Magazines’ brands include Better Homes and Gardens, Diabetic Living, Family Circle, InStyle, Girlfriend, Home Beautiful, Marie Claire, New Idea, Who, and Men’s Health, That’s Life! , Virgin Australia Voyeur and Women’s Health.
Late last year, Pacific Magazines became the final major publisher to withdraw for the Audited Media Association of Australia, effectively killing the magazine audit.
This heading is extremely misleading. Sub-editors and staff yesterday were told that nearly ALL of the subs would lose their jobs.
Chief subs might get to hold onto theirs (to oversee the work of PageMasters), and a very small number of other subs “may” get the chance to work at PageMasters.
This will be a disaster for Pacific’s titles. Quality will plummet and the company will be forced to reverse its decision – although many suspect SevenWest is simply slashing costs to prepare for a sale of PacMags.
Subs at Pacific were in shock yesterday and retreated to the nearby Camelia Grove pub after the announcement to drown their sorrows.
User ID not verified.
What a disgrace that Pacmags would compromise quality in an arrangement with Pagemasters [edited under Mumbrella’s comment moderation policy].
After declaring in December that there would be no more redundancies, only six months later this plan comes out. Can they not think of any long-term plan for survival that doesn’t just involve cutting staff?
The Australian public will just stop buying the magazines completely when the standards inevitably fall, and that will be the death of magazines. The future is digital, you may be saying, but how much effort has Pacmags made in the past few years to train their staff (including the 20 or so sub-editors who are being made redundant) in areas such as digital and social, to enable the company to grow and succeed? Not enough, if any.
User ID not verified.
Let me sub your opening para for you…
‘Pacific Magazines is set to reduce its cost base before 30 June, with 11 redundancies planned and consultations underway with sub-editors across all brands about a proposal to outsource their work to external sub copy business, Pagemasters.’
How about;
‘Pacific Magazines has given its staff barely ten day’s notice of its plan to slash up to 20 jobs from its commercial magazine division, after signing a deal to offshore its sub-editing with New Zealand-based outfit Pagemasters. The redundancies will take affect before June 30, according to an email from CEO Gereurd Roberts that was leaked by staff.’
No need to sugar-coat this with Pac Mag’s own bullshit PR spin. ‘Should the proposal proceed’, my arse. Beancounters can’t make great magazine products, but they can sure gut the ability of a publishing house to do just that.
User ID not verified.
Actually, inspired thinking
Pagemasters has a fantastic track record
Did that guy really say PAC mags is one of the fastest growing digital media businesses in the country? No problem then. All fixed. He’s clever for a 22 yr old.
One of the top 10,000 fastest growing digital media businesses in the country.
User ID not verified.
As a former Pac Mags sub, I can assure you there was NO training on offer to help everyone transition to new digital platforms or anything they have planned for the future.
Standards will drop immediately and while some straight-forward stories could easily be edited by Pagemasters, for others, like those with a lot of product information for example, it will just be a disaster.
I feel sick for all of the subs, but clearly it’s a dying profession. Or at least dying in the traditional magazine model.
User ID not verified.