Coronavirus: News Corp executive team to take pay cuts, but job losses ‘inevitable’

Falling business confidence is impacting the advertising revenues of all media businesses.

News Corp Australia boss Michael Miller has said the executive leadership team will take a pay cut.

News Corp Australia boss Michael Miller has said he and the executive leadership team will take a pay cut and he would do all he can to save jobs at the company, but has steeled staff for job losses amid the ongoing economic crisis caused by COVID-19.

While the public are turning to trusted news brands in huge numbers, falling business confidence is impacting the advertising revenues of all media businesses with Nine Entertainment, Seven West Media, Southern Cross and oOh! Media all putting out guidance updates in the last week.

Despite soaring readership and subscriptions during the coronavirus crisis, the advertising market has been hugely affected by the outbreak, forcing businesses to close en masse.

In a note to staff on Wednesday, Mr Miller, who is News Corp executive chairman Australasia and publisher of The Australian, said he is committed to saving as many jobs at the business as possible in the coming months, but some losses will be “inevitable.”

“I want to assure you that my priority is to preserve as many jobs across the company as possible, but it is now clear that some job losses will be inevitable. Together we need to move quickly to do everything we can to secure the health of our business and retain jobs,” Mr Miller wrote on Wednesday.

Mr Miller said the executive team would be taking a “significant pay cut” and will work with staff to take leave and move to less days in a bid to save jobs over the COVID-19 crisis period, which he was expecting to continue till the end of May.

“As a first step I have informed the executive team that as leaders, we will need to take a significant pay cut.

“Over the coming days we will need to talk to you about a range of options for you to help reduce our cost base. These discussions will include part-time work, nine-day fortnights, taking annual or long service leave. We will also be directing you to take some leave across the Easter period.

“Our goal is to minimise the impact of reduced revenue and retain as many jobs as possible.”

Most News Corp staff across journalism, advertising and other roles are currently working from home with mastheads including The Australian being published with a skeleton staff or completely remotely.

Mr Miller paid tribute to all those at the company who are working in difficult conditions to continue to publish vital news and analysis during the COVID-19 crisis urging staff to maintain social distancing and look after their health.

“I have corresponded with many of you over recent days and have heard how you are reinventing how news is gathered, how newspapers and websites can be produced and how you are helping our clients with their changing businesses. You have all responded to this crisis with the spirit that sets our company apart. I appreciate your continued commitment in these difficult circumstances.

In an interview with The Australian on Monday Mr Miller noted sales of News Corp mastheads were up 41 per cent and digital subscriptions up 21 per cent in the last week with huge demand for reliable news in midst of the COVID-19 outbreak.

The crisis has highlighted the need for verified news as fake news and rumours do the rounds of social media websites like Twitter and Facebook.

“I think that more and more people are recognising what a trusted news brand is,” Mr Miller said. “It’s produced by journalists who put their name on it, their credibility out there every day.

“It’s edited. It’s checked. We sign up to codes of conduct. And we’re held accountable.”

News Corp is the publisher of titles including The Australian, The Daily Telegraph and Herald Sun.