SCA makes mass redundancies to help combat ‘challenging and difficult market’
Southern Cross Austereo (SCA) has made about 90 people redundant this week as it battles tough market conditions.
Insiders suggest it isn’t the first round to hit the radio business, nor will it be the last.
SCA will make up to 90 staff redundant this week
An SCA spokesperson told Mumbrella the company was facing the same tightening budgets as other media businesses.
“The entire advertising and media sector is operating in a challenging and difficult market and Southern Cross Austereo has and is being equally affected,” said the spokesperson.
“Management, with the support of the Board, has conducted a comprehensive review of our workforce structure to provide an effective and efficient organisation for now and into the future. These proposed changes will impact some of our people.
“These decisions have not been taken lightly and we are committed to supporting our people as we work through this process.”
SCA isn’t the only media company battling the tough conditions. Rumours have swirled for months about redundancies across the industry from several major companies, and SCA itself announced a loss of up to 30 roles earlier in the year as it outsourced its broadcast transmissions.
In October the business released a warning to the Australian Stock Exchange (ASX) in the midst of ‘weak media markets, and a short and volatile advertising market’. In August, SCA posted a $91.395m loss, but reported revenue was up.
The most recent Standard Media Index (SMI) ad spend data reported an 8.5% drop for October, putting an end to hopes the end of the year would improve the ad spend outlook.
What a lovely Christmas gift to staff.
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Wow. That’s a serious cut-back
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I hear they have high discretionary incomes there.
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Wow that should save them some serious money considering they just handed out paycuts to the existing staff as well. Merry christmas to the hardworking staff indeed.
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Well that sucks.
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Shit90
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[Edited under Mumbrella’s comment moderation policy] the kiss of death
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Do you know how disgusting you sound? these are peoples jobs you are making a joke about.
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91m in loss but revenue was up… cost control anyone? Sad news/timing but that result leaves little option but to cut costs somewhere,
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The comment is less about the people who lost their jobs and more about their managers who kept theirs. I 100% feel for them, the comment is more about the disconnect between messaging to advertisers verse reality.
You can’t boast that a market is booming at the same time cutting the legs out from under your staff weeks out from Christmas.
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WOULDN’T HAVE HAPPENED IF THEY KEPT TOMMY LITTLE ON THE BOOKS
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I’d say they should have started with the C-suite. It’s growing… CEO, COO, CFO, CSO, CTO, CMO recently and looking for a CCO.
That’s a lot a merry Christmas’.
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NJNE MAY WELL EMPLOY THOSE STAFF WITH THEM OWNING RADIO ASSETS
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It’s very sad to see a management broadside decision to wipe out a large number or talented positions but not offering to cut back on grossly over paid executive positions first. Generally it takes two years for the new CEO to discover that they didn’t have a plan and were purely aiming at getting their short term bonuses and getting out before shareholders become aware of the deception!
MM
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No, it was a bitchy and uncalled for comment in light of 90 people losing their jobs.
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@Patrick Whittingham if that’s the way you inferred it, then that’s the way you inferred it.
But I do agree, it’s a bit rich to expect us to pitch a booming market to our clients and ignore they are issuing profit warnings, pay cuts, and redundancies. Bitchy or not, this comment has got the optics of the situation nailed.
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Welcome to the internet Patrick!
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Wow. Firstly, redundancy sucks! A lot. My thoughts are with everyone impacted.
Let’s not forget that SCA isn’t the regional economy, they have Metro radio, regional TV, regional radio and a myriad of other assets that impact their performance.
They aren’t Boomtown either… You’ve got Nine, Win, Prime, News, TRSN and Ooh all wrapped up in there as well.
Shit situation, shit timing, but let’s not write off an entire market or medium because of a restructure.
All the best to those 90 families in the coming months! I’m sure you’ll land on your feet, radio people have a way of doing that!
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Huh??? Word is Carrie & Tommy has extended to 3-5pm due to their continued success….
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Couldn’t agree more with all of this Brenton. I’d add it’s been a tough year across the media entire sector, so hopefully, all those who have been affected by redundancy can recalibrate over xmas and come back well and energised in 2020.
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Well if calling out the odd insensitive comment and vowing to stand by it using my name makes me a boomer, then so be it. https://mumbrella.com.au/its-time-for-publishers-to-stamp-out-anonymous-trolling-the-coward-punches-of-public-debate-585921
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I’m glad you have the luxury of job security to use your real name on the internet Patrick!
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Read the comments in the article you posted, Patrick.
The general consensus from the industry is that we like anonymised comments based on the protection it affords the little guy, who has every right to get their point across as you or say, the person above you were lambasting.
The only people who ‘demand names’ are the old white guys at the top.
Like you, Boomer.
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THE BUCK STOPS HERE > YOU HEARD IT HERE FIRST!!!!
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Sadly these are the second round of redundancies for this year, from a company who not only failed dismally in the recent culture surveys, but have been notorious underpayers for years. (Well, aside from their golden gooses)
They spend half their time trotting out the same spiel of being “Fiercely local and proudly national.” whilst at the same time making local positions redundant and centralizing key departments.
To the loyal staff who have lost their jobs – I hope that what comes next is a thousand times better than this joke of a company could have ever given you.
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