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Gyngell signals staff cuts at Nine

Nine boss tells staff cost cuts are coming. "The environment remains difficult and we have to toughen up."

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2013-01-30_1552Nine Entertainment Co CEO David Gyngell has this afternoon sent all staff an email forecasting cost-cutting measures in the face of a media advertising slowdown.

Nine Network Managing Director Jeffrey Browne and Nine Events Managing Director Geoff Jones will oversee cost-cutting plans to two sectors.

“As you are acutely aware the Australian media sector is going through unprecedented change whilst facing significant financial challenges caused by the continuing downturn in the advertising market,” Gyngell told staff.

“We are fortunate at Nine Entertainment Co to operate a portfolio of businesses which are dominant in their own sectors of the market, and each of our businesses is doing comparatively well against these trends. But in our place we always call it like it is, rather than just how we’d like it to be. And the reality is this: the environment remains difficult and we have to toughen up and find ways to save costs and operate more efficiently.”

Nine has not indicated how many positions may be affected by the cuts.

Gyngell also confirmed a new Board for Nine following Federal Court approval of its recapitalisation.

David Haslingden becomes Chairman with Board members now including independent non-executive directors Peter Costello, Hugh Marks, Joe Pollard, Apollo and Oaktree-appointed non-executive directors Steve Martinez, Kevin Crowe, Edgar Lee and Rajath Shourie. David Gyngell is also on the Board.

The foreshadowed cost cuts are said to be at the direction of Gyngell as CEO not the new Board or shareholders.

15 Responses

  1. @joey69
    I think that will certainly happen after their ridiculous NRL TV deal which should of went to either 7 or 10. Lucky that TEN didn’t end up on winning the rights which TEN seem keen on getting CA rights but I just hope 7 puts in a massive bid for the Olympics TV rights.

  2. The nrl tv rights deal will cause Gyngell to fall on his sword by years end. FTA cricket rights will go to 10. 9 will pay big time for the over the top tv rights deal to the NRL. include fox in that. same coverage and 3 times the money paid. go figure that out. way out of your depth Gyngell!

  4. Back in the day when ACA was rating comfortably above 2.2 mill a night (1990s with Ray at the helm and doing a few decent stories) and was sometimes the #1 show of the week, the annual budget was in excess of $20 mill.
    Now that it struggles to find an audience of 900K, can it really be sustained as such a cost centre?
    Perhaps it’s a long bow but the dumbing down of ACA seems to be in sync with the massive drop in ratings.

  5. just finished watching the latest episode of 30 Rock yesterday…maybe Mr Gyngell is a fan as well..
    as Mr Jack Donaghy made it quite clear in his search for a new CEO of NBC…that broadcast Television is dead…and the new CEO needs to strip it of parts and use the studio’s as accomodation to make money…
    i think that expalins it perfectly…so sad that there maybe truth in this fictional character

  10. “As you are acutely aware”
    “We are fortunate at Nine Entertainment Co”

    Last thing people who are getting the chop want to hear,maybe those that are staying might bring a smile or when I got the chop “We are please to announce”

  14. This can get interesting to see who stays and who gets the chop as I believe TEN has already started cost cutting and staff cuts, 7 should start doing the same as well

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