SCA Slashes Workforce by 8%: Major Cuts to Marketing and Triple M's Night Shift

Major Workforce Reductions at Southern Cross Austereo

Southern Cross Austereo (SCA) has announced significant layoffs just one week before its half-yearly results announcement. In a company-wide email, CEO John Kelly informed staff about the redundancies, citing challenging economic conditions and the need for further cost savings to prepare for potential growth.

Kelly stated, "Over the past year we have begun to see a build in momentum leading to improved results through a combination of improved across-the-board performance and a reduction in our operating cost base. However, to maintain this momentum and further position the business for sustainable growth, it is essential that we now reduce our cost base wherever possible."

The email highlighted that cuts would affect areas such as discretionary spending, programming, corporate overheads, and unfortunately, the workforce. Reports suggest that SCA plans to reduce its workforce by 8%, equating to approximately 140 staff members. Departments facing cuts include marketing, an internal media unit, Triple M’s Night Shift, and several regional breakfast shows. Notably, Luke Bona, a mid-dawn announcer for Triple M, is among those who have left.

This announcement caps off a tumultuous year for Southern Cross, which has already seen the departure of several senior executives, including Chris McWilliams, head of distribution and audience growth. In May, a proposed $250 million acquisition by Anchorage Capital Partners and radio rival ARN fell through, leading to a nearly 50% drop in SCA's share price. Additionally, the company sold its regional TV licenses to Network Ten.

SCA has been focused on cutting costs and enhancing operational efficiencies after reporting a 1% decline in revenue to $499.4 million and a staggering 49% drop in net profit for FY24. John Kelly is set to present the company's half-yearly results to investors next Thursday.