Nine says coronavirus changes to remain ‘for some time’

Nine boss Hugh Marks warns staff the impact of coronavirus will be far-reaching and will ‘fundamentally reshape’ the media giant.

Nine CEO Hugh Marks, right, with chairman Peter Costello. Picture: John Feder

Nine Entertainment chief executive Hugh Marks has told staff that the organisational changes made in response to the coronavirus crisis are likely to continue for some time, and that the media giant will be fundamentally reshaped.

In an email to staff on Thursday ahead of the Easter long weekend, Mr Marks said the fallout from the global coronavirus pandemic has been "profound in both a health and economic sense".

Mr Marks said he and his leadership team have been impressed with how staff have been working through the difficulty, which has hurt its broadcast and publishing operations as well as the broader industry.

"This is not to say we are immune to the downturn. Far from it. The impact will be substantial and far reaching," Mr Marks said.

"We must accept our new normal – the world has changed. All ad-funded media have been hit by the economic shock caused by COVID-19 and this has far reaching impacts on the way we operate our businesses – including a focus on managing costs and limiting our investment in the short-term," Mr Marks said.

Nine last month cut its newspaper operations by suspending a string of newspaper sections and magazines, including Domain and BOSS, as well as forcing staff to take leave and suspending bonuses, as advertisers slash spending during the coronavirus pandemic.

The group has also abandoned its annual guidance because of poor future advertising visibility in the wake of the coronavirus,

Mr Marks acknowledge that many staff have been asked to "take steps to reduce leave balances or find other steps to reduce the cost structure of your business units". He said it is all "important to our long-time viability".

"Also each of us must take personal responsibility for managing the difficult balance of remaining productive while many of us work from home.

“Leadership doesn’t just come from the top. It’s the little things that we each do to proactively address new challenges and solve problems, that will make a significant difference as we continue to trade through what is a heightened period of uncertainty and financial challenge," Mr Marks said.

“And it is likely this will be our new normal for some time to come.”

Given the ongoing changes and added pressures, Mr Marks urged staff to be “more mindful than ever of how we interact with our colleagues – choosing to support and uplift one another to do our jobs to the best of our abilities".

"Now is the time to think creatively and redesign what we do to suit the unique environment in which we are now operating. This will be key in the coming months as it will be our ability to work differently through this period that will define us, define our brands, and fundamentally reshape Nine to be ready for whatever the longer-term impacts on our community and our economy are," he said.

Mr Marks also urged staff to speak up if they have any suggestions on how the business could be run better.

"While we are not able to predict the shape the future will take, we are able to get our business structurally ready to respond and prosper," he said.

Mr Marks ended the email by wishing staff a "safe, quiet and peaceful holiday", and to “wash hands and keep your distance".