Live sport cuts from coronavirus crisis reduces Foxtel staff numbers

Foxtel makes 200 redundancies and stands down another 140 people till June 30 because of COVID-19 work stoppages.

Foxtel recently opened its full entertainment line up to all Foxtel customers during the coronavirus outbreak to help families access more entertainment during lockdown.

Foxtel has been forced to make 200 redundancies in the last week and stand down another 140 people till June 30 because of COVID-19 work stoppages, particularly affecting those working in live sport.

Foxtel CEO Patrick Delany has described the last week as “one of toughest in Foxtel’s history” in a staff email on Wednesday afternoon. Mr Delany said the job losses were part of a two-year review into how Foxtel’s products and finances were run, but that the COVID-19 crisis had accelerated the changes.

“You all know how hard we have been working over the past two years to transform our product and finances in the face of digital disruption. Now, with the impact of government COVID-19 restrictions on our business, we have had no choice but to accelerate that transformation,” Mr Delany told staff in an email.

“The actions we have had to take this week make it one of the toughest in Foxtel’s history having stood down 140 of our team until 30 June who have had COVID-19 related work stoppages and made another 200 of people redundant.”

Foxtel, which owns Fox Sports and sports streamer Kayo, has been hardest hit by the ban on sports, meaning 140 jobs in sports production needed to be suspended till June 30 until, it is hoped, NRL and AFL seasons might resume.

“The government COVID-19 restrictions are however seeing major challenges for us including the broadcast and streaming of live sport. And looking ahead, the economic outlook for Australia is deteriorating and our continued transformation will become even more important.

“What the team at Fox Sports have all done to reinvent our programming so our customers stick with us, has been extraordinary. And the ratings tell us customers are engaged with our classic matches, documentaries, pop up channels and live shows, and value what we are producing.

“However, we need to be prepared for a scenario in sport where season starts are delayed further. It is clear all codes are struggling with significant financial challenges and we should anticipate that the future shape of sport in Australia will be very different.”

Mr Delany emphasised the job losses were not an easy decision but were necessary to ensure Foxtel maintained its place as a competitive force in Australian media. Foxtel is majority owned by News Corp, publisher of The Australian.

“Restructuring and changing the way the company works is not an easy thing to do at any time. But with the impact of COVID-19, the only option is to act now to ensure we ride out the current situation and remain strong to compete with local and global media companies.

“These changes are even more difficult when we are not in the building together to speak to people face-to-face. I apologise to those impacted that the restrictions have meant your leaders have had to talk to you by video or by phone.”

Mr Delany said the rules for the government’s Job Keeper scheme do not allow Foxtel to apply at present, however stood down employees may be eligible for payments under the Job Seeker scheme.

Foxtel recently opened its full entertainment line up to all Foxtel customers during the coronavirus outbreak to help families access more entertainment during lockdown.

Mr Delany paid tribute to Foxtel staff who had continued to work under extremely tough conditions, to deliver to viewers who were demanding more content than ever before from the subscription broadcaster.

“On the entertainment side, the work we have done to give our customers more content and ensure our programming captures their imagination has been just as extraordinary. The strong ratings highlight how valuable our customers are finding this as they spend more time at home.”