Coronavirus: Seven Network orders staff to take severe wage cuts

Broadcaster’s chief reveals extraordinary cost cuts in email to staff today.

Seven CEO James Warburton. Picture: Nikki Short

The Seven Network is introducing severe cost-cutting measures, ordering staff to take 20% pay cuts and warning job losses are “inevitable”, as it braces for the economic impact of the coronavirus crisis.

The network’s chief, James Warburton, broke the news in an email to staff on Wednesday afternoon, saying “we find ourselves in an extraordinary and challenging situation”.

“We are all working to response to the COVID-19 pandemic and the impact it is having on our people, our business and the broader economy,” he said.

“We all need to work together to ensure our people get through the next few months.”

Outlining the austerity measures, Mr Warburton said that all network staff earning between $80,000 and $200,000 – and not covered by an enterprise agreement – “will be asked to work a four-day week with a commensurate 20 per cent reduction in salary”.

Those earning more than $200,000 “will be asked to accept a 20 per cent temporary salary reduction and continue to work a five-day week to assist the company through this challenging time”.

He said staff would be allowed to take accrued annual leave to cover the enforced cut in hours but that “once annual leave is exhausted, the fifth day will be unpaid”.

“Unfortunately, no negative leave balances will be possible,” he said.

“You can only use one annual leave day per week to top up your pay. You will not be able to use a block of days as a pay top up.

“Despite all these measures, due to the significant impact to the business, some job losses will be inevitable.

“None of these measures or decisions have been taken without deep consideration.”