Bauer Media axes 60 positions as magazine industry struggles in coronavirus pandemic
Monday, 4 May 2020
German publisher Bauer Media has moved to swiftly slash costs at its Pacific Magazines unit in Australia, cutting more than 60 jobs via a Zoom meeting.
It comes after Bauer announced in April it was shutting up its New Zealand business, which meant the closure of publications including The Listener, New Zealand Woman's Weekly, Woman's Day, North & South, Metro, Fashion Quarterly and Next.
The move caused controversy, with former editors of Bauer Media's magazines calling the closure the 'apocalypse' of New Zealand's publishing industry.
Now, Bauer has cut 60 jobs in Australia on the first day after its (NZ$42.4m) acquisition of the business from Seven West Media.
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The German family-owned publisher told staff in a Zoom meeting on Monday that there would be significant job cuts as Pacific was integrated into the company. About 60 staff were later told they would not be continuing with the business and a further 15 employees were stood down. Pacific titles Men's Health and Women's Health will also be temporarily halted.
About 160 Pacific had moved to Bauer on Friday. Pacific's other titles include WHO, New Idea and Better Homes and Gardens.
Bauer completed its acquisition of Pacific last Friday after a tumultuous six month process. The two companies were expected to come together last December but a delay by the Australian Competition and Consumer Commission left staff waiting until April for approval. After receiving the green light from the competition regulator, Bauer tried to renegotiate the terms of the deal.
Pacific filed a case with the NSW Supreme Court to compel completion before agreeing to a delayed completion date of May 1.
Like New Zealand, Australia's media industry was challenged before the Covid-19 pandemic.
Drastic declines in advertising spend since then have caused a number of businesses including Bauer to cut costs.
Sources said staff from Instyle, BEAUTYcrew, Belle and Country Style were among those told via Zoom they would not be continuing with the business. The redundancies are in addition to the Pacific roles axed by Bauer late last year.
The redundancies are the second in a week for Bauer, which axed 70 jobs and suspended Elle, Harper's Bazaar, OK! and NW before merger completion. Sources said NW and OK! had been suspended for the next three to six months. The publisher has also suspended the use of freelance journalists and halted staff expense claims.
'The economic impact of COVID-19 is affecting the entire media industry but by combining Pacific Magazines with Bauer Media Australia, it will create a stronger business with the capabilities to better compete in a digital world,' Bauer chief executive Brendon Hill said last week.
Other Australian media companies such as News Corp, Nine Entertainment Co and Seven West Media have also been forced to cut costs.
Bauer declined to comment.