Seven Network owner Southern Cross Media to cut up to 300 jobs as ASX follows Wall Street down
Southern Cross Media, one of Australia's largest media companies and owner of the Seven network, said it would cut up to 300 jobs across its operations. The announcement came on a day the ASX was set to follow a weak Wall Street close.
Southern Cross Media Group said in a memo to staff that around 300 positions will be cut across its television broadcasting, radio and digital businesses. Chief executive John Kelly cited an 11% drop in advertising revenue over the past year. The MEAA union said it would call an urgent general meeting.
Australian Council of Trade Unions president Michele O'Neil said the move "will weaken local journalism". Communications Minister Michelle Rowland confirmed that the government's local-content quota legislation will go to Parliament next month. ABC business correspondent Daniel Ziffer reported that bulletins at most Seven News regional stations are expected to be shortened by about two hours.
The ASX 200 was set to open about 0.9% lower; the S&P 500 had closed down 1.1% on Wall Street the previous session. Southern Cross shares fell 6.4% in pre-market trading. AMP Capital chief economist Shane Oliver said he expects the slowdown in the advertising market to continue through year-end. (Not investment advice.)
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