Jobs go as Nine restructures after Fairfax merger
Jobs go as Nine boss Hugh Marks outlines new corporate structure following $4 billion merger with Fairfax Media.
Consulting firm Deloitte is set to be tapped by Nine Entertainment to review closer editorial working arrangements between TV and newspaper reporters, as boss Hugh Marks on Monday put his stamp on the $4 billion merger with Fairfax Media by axing 92 staff.
Ahead of the media merger’s completion on Friday, Nine chief executive Marks sent a note to 6000 Nine and Fairfax staff outlining the new corporate structure, which will lead to the departure of several top Fairfax executives, including chief executive Greg Hywood and chief financial officer David Housego, and dozens of back office staff.
No editorial jobs have been lost as part of the new corporate structure, but Fairfax’s top political journalist Mark Kenny has already jumped ship, joining the Australian National University.
In the note to staff, Mr Marks said the new structure is designed to strengthen its “offerings to audiences and clients, including maximising our combined ability to invest in quality Australian content and journalism.”
“In total 144 roles will be made redundant due to duplication and some vacant positions will no longer be required. This impacts approximately 92 people,” Mr Marks said in the note, seen by The Australian.
“We have spoken to or will speak to those affected as soon as possible so that all employees have clarity and certainty before we commence operations as a combined business.”
The enlarged group, to be called Nine, will be organised into four operating businesses: Australian Community Media, Printing and Stuff, Publishing, Stan and Television.
The company will consist of a free-to-air television network, home to reality shows such as Married At First Sight and The Block, and digital business 9 Now, plus Australian and New Zealand mastheads including the The Sydney Morning Herald, The Age and The Australian Financial Review.
It will also own a near 60 per cent stake in ASX-listed online property listing group Domain and a 54.5 per cent shareholding in listed-radio network Macquarie Media.
The merger is forecast to deliver annual cost savings of at least $50 million.
Mr Hywood sent a separate note to his staff, reiterating his support for the tie-up.
“Now virtually complete, this exciting merger with Nine is the right next step for Fairfax Media. Our businesses will be better for it and the opportunities for our people will expand over time,” said Mr Hywood, who has remained tight-lipped about his next corporate job.
Other Fairfax executives heading out the door include group general counsel & company secretary Gail Hambly, human resources director Michelle Williams, strategy and corporate development director Dhruv Gupta and communications director Brad Hatch.
Nine’s CEO Greg Barnes will stay on his in role, with Michael Stephenson continuing in his role as chief sales officer and Lizzie Young remaining as group director of content strategy, which includes Powered.
Jason Pellegrino will remain the boss of Domain after joining in late August, and Macquarie Radio will be led by Adam Lang, Mr Marks said in the staff note.
Chris Janz, managing director of Australian Metro Publishing — the division overseeing the SMH, The Age and AFR, has been given more responsibility and will run all the publishing operations. Allen Williams will continue to run Australian Community Media and Printing, Sinead Boucher will lead the publishing business Stuff in New Zealand and Martin Jolly will head the Events unit.
Streaming video-on-demand player Stan will continue to be run by Mike Sneesby, while Michael Healy will run the television operations.
Corporate functions, including legal, HR, communications, strategy, finance and IT, continue to be delivered to the combined business, with teams coming together under new leadership, Mr Hywood said.
The corporate structure news comes less than a week after the Federal Court approved the merger, which saw Fairfax stop trading on the ASX last Wednesday.
The ANU said on Monday that Mr Kenny, who joined Fairfax at the start of 2013, has been appointed a senior fellow at its Australian Studies Institute, effective from early next year.
The merger is expected to be completed on Friday, with the enlarged company set to start married life on December 10.
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