Southern Cross Media to eject hundreds of full-time staff before end of June

One of Australia’s biggest media companies will axe hundreds of full-time employees after announcing a profit downgrade as market conditions “deteriorate materially”. Southern Cross Media Group, owners of the Seven network, the West Australian and Southern Cross Austereo, is axing between 250 and 300 full-time staff members. In an announcement posted to the ASX on Thursday, the company said the employees would be “leaving the group before June 30”. It’s the latest blow for the company, which was formed earlier this year in the merger of Southern Cross Austereo and 7West Media, previously owned by billionaire Kerry Stokes. SCM said it was launching a “cost reduction program” to “remove duplication, streamline and automate our processes, further focus our content acquisition and better leverage the group’s management infrastructure and procurement scale”. The group said it now expected underlying EBITDA (earnings before interest, tax, depreciation and amortisation) of $185m to $190m, compared with the previously advised range of $200m to $220m. It says the staff affected would be primarily “mid and back office, and corporate staff”. In an email to staff seen by NewsWire, chief executive Rohan Lund said the decision had “not been taken lightly”. “We have so many talented people in this business and I couldn’t be more impressed by the passion and care you show every day for the business and for each other,” Mr Lund said. “That is the culture we will need to deliver on the strategy – a culture based on genuine care and trust. “But we need to be honest with ourselves that those markets are under immense pressure.” Mr Lund said the business was “navigating a demanding market” and there was ultimately “no choice but to reset the cost base”. “This transformation involves making incredibly tough choices regarding our team structures, and we will be saying goodbye to many smart, talented, and hard-working colleagues who have played a vital role in building both businesses,” he said. “We are a better company because of their dedication, and we are committed to treating every departing team member with the respect and compassion they deserve.” The group hold a town hall meeting for staff on Thursday morning to discuss “a path forward”. The upheaval comes just a month after Mr Lund began his tenure as the new chief executive of Southern Cross Media. In February, SCA chief executive and managing director Jeff Howard abruptly left the company. Mr Howard was the former boss of Seven West Media and took on the role following the $400m merger. Asked previously about recent and future redundancies in the radio division of the company, Mr Lund acknowledged they had been through a lot of “pain” but reiterated it was “just the nature of the business”.