Seven CEO orders staff pay cuts

Seven is ordering staff to take 20% pay cuts as part of steps against the economic impact of the coronavirus pandemic.

The Australian reports CEO James Warburton sent an email to staff today (April 1) saying “we find ourselves in an extraordinary and challenging situation”.

“We are all working to response to the COVID-19 pandemic and the impact it is having on our people, our business and the broader economy,” he said.

“We all need to work together to ensure our people get through the next few months.”

All staff earning between $80,000 and $200,000 – and not covered by an enterprise agreement – “will be asked to work a four-day week with a commensurate 20% reduction in salary”.

Those earning more than $200,000 “will be asked to accept a 20% temporary salary reduction and continue to work a five-day week to assist the company through this challenging time”.

Staff are also being directed to use annual leave.

The measures follow a decline in Seven West Media company shares -unrelated to coronavirus- falling ratings and steps to address debt, including asset sales.

In November the company share price was 48c. Today it languishes at around 8c.

16 Comments:

  1. i mean 200k for a job in tv. OMG 7 was once the king of TV, they bang on about how much they win the ratings. goes to show you can have everyone watching you but still cant make money. makes you wonder.

  2. Justin Leigh

    TV has gone up quite a bit on 10, 9, ABC and Foxtel and if anything TV viewing is going to increase and clients in most categories will keep spending. I really feel for 7 staff who are probably madly working at home keeping the network a float. TV is essential right now so keep it alive, motivate your staff don’t cripple them when you need them most.

  3. Total con job – they were in deep trouble long before corona. Now they are using it as an excuse to clean house and rob the remaining staff.

  4. Pitty they have to cut due to their previous poor management/show decisions, this is their time to shine while we are all stuck at home wanting things to watch, they can only show us cheap repeats or productions already done given the shutdowns so no new costs to incur, maybe all advertising has dried up also and soon we will be watching commercial free!

    • Most companies don’t have the sort of contingency required for the current situation which is why taxpayers are forking out something in the order of $200 Billion in payments to provide the contingency.

      Woolworths and Coles seem to be doing well and putting on staff. Big banks and telcos seem to be able to hold onto their staff. Discretionary retailers, restaurants, tourism and airlines etc. are all but closed for business.

    • How can there be contingency on this, yes it started with under performing MKR however no AFL, no Olympics. No network will hit expected budgets in 2020. This will happen across all networks

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