Youth title Punkee will stop publishing and its stablemate Junkee will move to a smaller operation in the face of a difficult advertising market.
Publisher RACAT Group said a “number” of roles are affected.
Junkee will continue to operate, focused on creator-led content in a leaner structure.
"This is a sad day for those leaving us and Junkee Media,” said Sophie Hanson, editor in chief of Junkee Media.
“I want to thank the team, both departing and broader, for bringing their passion and talent to work every day.
“Moving forward, I am confident that a tighter editorial focus will solidify our connection with genuine, niche fandoms in a way that is completely unique in the Australian media landscape.
“I am proud that we remain fiercely independent, and this new chapter of Junkee will zero-in on the platforms where communities live, and culture gathers."
Steve Morgan, CFO of RACAT Group, said the changes were difficult but necessary to make Junkee Media sustainable.
“The economics of advertiser supported digital publishing in Australia have become increasingly difficult,” he said.
“Advertising revenue keeps consolidating into the major platforms, while a growing number of competitors compete for a smaller pool.
"The same pressures have forced similar decisions across the industry, and we haven't been immune.
“These changes reflect those conditions rather than the talent of the team, whose work has been excellent."
He said the company is committed to treating all affected employees fairly and with respect.
RACAT bought Junkee Media from oOh!media in 2021. Commercial terms were not revealed but reports put the sale value at $7 million.
The outdoor media company bought Junkee in 2016, paying $11.05 million for 85% of the youth publisher with a right to acquire the remaining 15% of shares.
RACAT’s assets include Australian Geographic, game developer Runaway and Northern Pictures.
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