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.


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