MediaWorks planning to cut 130 roles in restructure

Monday, 25 May 2020

Staff at television channel Three owner MediaWorks have been told of plans to cut 130 roles as part of restructuring.

They were called into a meeting with chief executive Michael Anderson at 10am.

Most of the cuts will come in the radio and sales departments.

MediaWorks runs Mai Fm and The Edge, among other stations.

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In an email to staff, Anderson said it was 'truly one of the hardest things I've had to do in my professional career'.

'As you know, Covid-19 has simultaneously changed the world and impacted our business in ways that we could not predict or prepare for.

'It has also completely changed the market that we operate in and this means that we must adapt to ensure our survival and sustainability in the coming months.

'As of today, we must begin reducing the size of our business and we are now entering a restructuring process across our sales, out-of-home and radio divisions.

'It's proposed that in the region of 130 of our friends and colleagues will have to leave our business.

'Because the sale process for TV is ongoing, there will only be a handful of changes to this area of our business and corporate at this stage.'

In a statement, a MediaWorks spokesperson said: 'This is a very sad time for MediaWorks. Our focus is on our people right now.'

The television and radio business, which is majority owned by United States private equity firm Oaktree, asked all its staff to take a pay cut of at least 15 per cent in April, when Anderson told staff that the business was in a 'fight for survival'.

Anderson said on Monday that would have to extend to the whole organisation through until the end of September.

'We've spent countless hours modelling financials; taking into account the support coming from the wage subsidy, government support, changes to our incentive structures and the reduction of all possible costs as well as the suspension of key projects.

'But there was nothing in our modelling, or in our forecasts that would put us in a position where this can be avoided.'

The company is believed to be the single largest beneficiary of a $50 million bail-out of some media businesses that was announced later that month by the Government.

Media commentator Gavin Ellis said MediaWorks was not alone in having to make cuts but the scale of the reduction was a surprise. 'It's indicative of the state of the industry - we've talked about this being an existential crisis and this is yet more proof of that.'

Competitor NZME had seen its radio division severely affected as well, he said.

He said Covid-19 was producing a 'perfect storm' that was bringing problems within the media environment to a head.