Ten Network Holdings is set to axe about 100 jobs from its newsroom after poor television ratings led to a full year net loss of almost $13 million.
Staff at the television network were briefed on the redundancy program on Thursday as Ten chief executive James Warburton detailed reasons behind Ten’s full year loss.
“One of those key communications is a change program that we are driving through our news and operations division,” Mr Warburton said in a presentation.
“Discussions around the details of that plan as I said are starting today with our staff but it will involve a voluntary redundancy program.”
Ten’s newsrooms around Australia look set to bear the brunt of the staff cuts.
Media Entertainment and Arts Alliance (MEAA) federal secretary Chris Warren said discussions with Ten indicated the network was looking to cut about 100 journalists, camera and producer positions, or about one-third of its national newsroom.
While state-based bulletins with their own presenters would remain, Mr Warren said the changes would result in fewer local stories being produced, as well as the loss of local perspectives on big national stories.
“We are very disappointed, both for the journalists who work there and the community at large,” Mr Warren said in Thursday.
“There will be a significant loss of local voices in Australia.”
Mr Warren said Ten had asked for expressions of interest for those seeking voluntary redundancy by the end of next week.
Mr Warburton said a key part of the review, which commenced earlier in 2012 and was ongoing, included looking at new ways to gather and present news through “rapidly changing technology in all parts of the news process”.
Confirmation of a voluntary redundancy program came as Ten reported a $12.9 million net loss for the 12 months to August 31, 2012, compared with net profit of $14.2 million in the prior corresponding period.
Ten’s television network, which generates the bulk of earnings, suffered a 14.5 per cent fall in revenue amid soft ratings.
Ten has struggled so far in calendar 2012, with shows such as Everybody Dance Now – hosted by Ten director Lachlan Murdoch’s wife Sarah Murdoch – The Shire and I Will Survive failing to fire.
The weak ratings have hit advertising revenue.
Industry figures showed Ten had just 25.5 per cent of the capital city television advertising market in the six months to June 30, 2012, well behind Seven’s 40 per cent and Nine’s 34.5 per cent.
And data for September suggested Ten’s advertising share had dropped further, to about a 20 per cent share.
Independent media commentator Peter Cox said he had never seen numbers so low.
Mr Cox said efforts to reduce costs were unlikely to offset the substantial decline in revenue Ten was suffering through.
“Even if they got five per cent cuts in costs the decrease in revenue easily outweighs that which would a very dangerous combination,” Mr Cox said.
“I don’t see anywhere in the results today that would show they could claw their way out.”
Ten shares closed 0.5 cents, or 1.6 per cent, lower at 30.5 cents.
