Up to 90 jobs to go at MediaWorks, staff told in email

Staff received an email in which MediaWorks chief executive Cam Wallace appeared to say scores of job cuts would be necessary. Photo / NZME

MediaWorks has today told its staff up to 90 jobs could be slashed.

Staff today received an email from chief executive Cam Wallace.

“As with many businesses in New Zealand, we are not immune to the impacts of the current economic factors [including] a likely recession this year, which will see a dampening demand from advertisers across the board,” he said.

The email added: “I know this news will be unsettling for many MediaWorkers and we are committed to supporting our teams throughout this process.”

Staff were told “two-thirds” of MediaWorks’ costs were labour-related.

“And I’m sorry to let you know that we have had to make the difficult decision to review our operating model and reduce our workforce by up to 90 roles,” Wallace added.

That included what were deemed “a significant number of vacant roles”, to ensure the company was efficient, effective and resilient.

The email added: “Between now and the end of March we will be consulting with teams across MediaWorks and aim to do this as transparently as possible.”

“It’s not a very steady ship and it’s very nervous,” a radio professional with several friends at MediaWorks said today after proposed redundancies were announced.

“It’s a shame because there’s a lot of good people tied up with it.”

MediaWorks operates TodayFM talk radio, as well as More FM, the Edge, the Breeze, Mai FM and the Rock.

The company poached former TV3 political editor Tova O’Brien away from Discovery after offering her a new talkback radio show.

But an employment dispute about restraint of trade followed and O’Brien went to the Employment Relations Authority.

She lost the case but the ERA cut the duration of the three-month non-compete restraint by almost half, so she only had to stay off the air for seven weeks.

At the time of the Maria Dew Report into workplace harassment in 2021, MediaWorks had at least 483 staff.

Last year it recorded a loss of $2.9 million.

MediaWorks grew revenue to $203m last year but according to BusinessDesk, its expenses also rose - from $183m to $205m.

Cash also fell from $24.4m in 2020 to $13.7m last year.

Wallace told BusinessDesk the results showed the business was resilient despite facing challenges from Covid-19.

Midway through last year, Sky TV looked at buying MediaWorks, only to walk away from the potential deal after large Sky shareholders raised doubts.

At the time, Morningstar analyst Brian Han told the Herald he was surprised the deal was ever proposed.

He questioned why Sky would want to pursue a “structurally challenged” traditional media company.

“Radio hasn’t grown for a long time. Outdoor advertising has grown, but it’s a small market,” Han said.