Up to 50 positions will disappear as Nine’s streaming and broadcast divisions are pulled together under a new operating model.
The model, designed to reduce duplication and offset a challenging advertising market, brings together teams across Stan, Channel 9 and 9Now.
Nine, in a trading update last week, reported a weaker than expected advertising market and plans to cut costs further, to $100 million from $90 million.
“We have today commenced consultation with some team members, whose roles within Nine’s Streaming & Broadcast division are impacted by our new operating model,” a Nine spokesperson said.
“Our primary focus during the consultation is supporting these team members through access to our employee wellbeing provider, as well as exploring redeployment opportunities within the broader Nine Group.”
Insiders said about 50 roles are impacted but the number of people departing the business may be less than this due to the potential for redeployment.
While some roles will be made redundant, there are also vacant positions which won’t be filled and contracts that aren’t being renewed.
Insiders said the new operating model had already meant greater use of Nine's content across platforms.
This included longform news & current affairs on Stan.
In January Nine announced the business would be streamlined into three consumer-focused divisions: Streaming & Broadcast; Publishing; and Marketplaces.
The updated operating model will underpin Nine’s plan to reduce its cost base and enhance profitability through greater utilisation of premium assets.
The shake-up of the company structure came after Michael Stephenson, the company's former chief sales officer, jumped to ARN Media where he is now CEO.
Former Foxtel executive Amanda Laing was named managing director of the Streaming & Broadcast division.
The company reported a 31% fall to $134.9 million in net profit after tax for the year to June. Revenue was down 3% to $2.6 billion.
Total TV revenue fell 10% to $1.13 billion over the full year, impacted by a "weak" advertising market.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.