After a significant drop in revenue this year across the board for all media, Nova Entertainment has reacted to the impact on its business with reduced spending which will mean staff redundancies.
It is expected that 70 people will be leaving the broadcaster, although just who has not yet been revealed which will make for a stressful time for many.
Some staff left the business last year and earlier this year it is believed staff earning above a certain amount took a 10% salary cut.
Although departing staff have yet to be identified, it seems that sales might be a key area for cuts.
Cathy O’Connor, Nova Entertainment CEO explained today:
“Nova Entertainment, like most other companies, has been impacted by the COVID-19 crisis with an estimated fall in revenue of over 25 per cent this year. The media industry has been particularly hard hit and we expect the downturn to continue for the next 12 to 18 months.
“As a result, we have reviewed every aspect of our business to reduce costs and increase efficiency while continuing to deliver for our clients and audiences.
“Today we advised our team of the results of the review.
“We will reduce costs by nine per cent with all areas of the business being impacted. As a result, some staff will unfortunately be made redundant. We will try to place as many of those affected in other roles within the group, but those leaving will be paid above their entitlements and given further support, including training courses to reskill or upskill, and assistance to find new external positions.
“These decisions will protect our core business and ensure that our company remains strong and successful and is positioned for growth as the economy recovers.”
Earlier in 2020 Southern Cross Austereo revealed it would be applying for the JobKeeper subsidy for 1,750 of its staff. This came after it reported in April it had cut overall staff by 7% in FY20 to-date. Back then the company was also planning “further significant reductions in labour costs”.
SCA implemented 10% salary cut for all on $68,000 or more, cancellation of executive bonuses and mandatory annual leave.
At ARN owner HT&E, the company has been on a cost drive too with the elimination of bonuses and incentives and new employee hires. The board and management took a 20% pay cut and will forego incentive payments this year. Staff reduced work hours, some on short term pay cuts and were asked to also use existing leave entitlements.