Southern Cross Austereo (SCA) CEO John Kelly has informed staff of further cost-cutting measures, including redundancies, as the media company continues to navigate challenging economic conditions.
In an internal email sent to all employees on Thursday afternoon, Kelly acknowledged the structural challenges facing the Australian media industry and the need for SCA to operate more efficiently to remain competitive. He noted that despite recent improvements in performance and reductions in operating costs, further cuts were necessary to sustain momentum and position the business for long-term growth.
“To maintain this momentum and further position the business for sustainable growth, it is essential that we now reduce our cost base wherever possible,” Kelly wrote to staff. “Accordingly, we are required to make further cost reductions across areas such as discretionary spend, programming, corporate overheads, and regrettably, our workforce.”
The CEO confirmed that affected staff had already been contacted and expressed his regret over the impact of the decision. “That said, this is the most difficult part of my job and of our leaders, and my thoughts are with those impacted today,” he said.
Kelly reiterated that SCA remains focused on revitalising and future-proofing the business, emphasising the company’s confidence in its strategic direction.
“Our people are critical to the realisation of our plan, and we thank you for your ongoing support as we work together to ensure a strong and sustainable future for SCA,” he added.
SCA declined to provide further comment on the number of departures or additional details regarding the restructuring. The announcement follows a period of heightened corporate activity, with SCA recently being the target of acquisition interest from other Australian media operators.
Mediaweek will follow up with further details when SCA releases its half-year results next week.