ABC boss Michelle Guthrie sacked by board

Australian Broadcasting Corporation managing director Michelle Guthrie has been axed by the public broadcaster's board after more than two years at the helm.

After a meeting of the board at the ABC, the directors decided it was "not in the best interests of the ABC for Ms Guthrie to continue to lead the organisation," a statement said.

ABC chairman Justin Milne said the decision was for "the long-term interests of our own people and the millions of Australians who engage with ABC content every week".

"We understand that transitions can be disruptive in the short-term, however, the ABC is fortunate to have an experienced and capable executive team that will provide continuity in the months ahead," he said.

David Anderson, current director of entertainment and specialist, will act as managing director until the role is filled. The ABC has commenced a formal search process, with both internal and external candidates to be considered - without involvement from the government.

Mr Milne emailed ABC staff on Monday morning saying Ms Guthrie’s departure followed “several months” of discussions, "which concluded when the board resolved to take this course of action".

He said he appreciated the "uncertainty" the leadership change would cause for staff, but added: "A change of leadership does not mean a change in strategy."

ABC managing director Michelle Guthrie has been axed from the public broadcaster.Credit: Alex Ellinghausen

Mr Milne told staff he was meeting the ABC's leadership team to explain the news, noting that some of them were currently overseas.

In a statement, Ms Guthrie said she was considering her legal options.

"I am devastated by the board's decision to terminate my employment despite no claim of wrongdoing on my part," she said.

Communications Minister Mitch Fifield thanked Ms Guthrie for her service "in what is a challenging and rapidly changing media environment". He said the government respected the independence of the ABC's board, which appoints the managing director.

Ms Guthrie started at the ABC in May 2016 as the first female managing director in the corporation’s 86-year history, with a salary of $900,000 a year, replacing Mark Scott.

She moved back to Australia from Singapore for the role, where she had been managing director of agency relationships for Google's Asia-Pacific region.

In March 2017, Ms Guthrie began a "cultural and structural transformation" at the broadcaster. But she has also faced internal division over the organisation's direction, as well as budgeting pressure following cuts and another looming funding freeze.

Fairfax Media understands one of the central disagreements between Ms Guthrie and the board was over Project Jetstream, a costly long-term plan to transform the ABC into a digital, post-television media service.

Mr Milne has strongly backed the project, warning the ABC will "wither away and cease to exist" without substantial government investment in its digital-only future. But it is understood Ms Guthrie was sceptical about the ABC's ability to extract extra funding in the current climate.

In an interview with ABC television on Monday, Mr Milne refused to discuss in detail why Ms Guthrie was sacked, but said the broadcaster needed a different "leadership style". He also said the ABC's relationship with the federal government under Ms Guthrie "could have been better", and it was important for the managing director to spend a lot of time in Canberra.

More to come