Staff were told at a Thursday town hall that between 5 and 8% of the company’s 5000-strong workforce including casuals face redundancy. The newly installed chief executive fronted employees with pre-screened relatively gentle questions and acknowledged that many of those leaving had helped build the group’s position in key markets.
Southern Cross Media is resetting its entire cost base with every department swept into the programme rather than isolating specific units. That approach means job losses are expected across all divisions from content and sales to back-office functions as the company looks to pull about $30m out of its annual expenses.
Executives describe the move as a response to a demanding trading environment, pointing to a tightening advertising sector that is squeezing revenue across radio and television. Southern Cross Media depends heavily on advertising spend so even modest pullbacks from major advertisers can quickly pressure margins and force cost reductions.
The broad nature of the restructure suggests the company is not just trimming around the edges but trying to reposition its operations for a slower ad market.
