Junkee Media’s parent company RACAT Group has confirmed it will cease publishing the Gen Z-focused website Punkee and dramatically scale back Junkee Media itself, leaving the business with a skeleton crew as it pivots to a creator-led model.
RACAT Group cited declining advertiser support and the ongoing migration of advertising dollars to major social media platforms as the catalyst for the overhaul, which has left “a number of roles” affected.
In a statement from RACAT Group CFO Steve Morgan, the company said the digital publishing landscape in Australia had become unsustainable for traditional advertiser-funded models.
“The economics of advertiser-supported digital publishing in Australia have become increasingly difficult,” Morgan said.
“Advertising revenue keeps consolidating into the major platforms, while a growing number of competitors compete for a smaller pool. The same pressures have forced similar decisions across the industry, and we haven’t been immune. These changes reflect those conditions rather than the talent of the team, whose work has been excellent.”
A source told Mediaweek the cuts have been severe: just two staff remain at Junkee, including head of editorial Sophie Hanson.
RACAT Group, which also owns Australian Geographic, bought Junkee Media from Ooh Media five years ago. The latest restructuring marks a significant scaling back of that investment.