Earlier this year MediaWorks posted a net after-tax loss of $107.1 million after an impairment of $86.5 million – it insisted its “turnaround” is on track, despite a challenging economy and media market.
Earlier this year MediaWorks posted a net after-tax loss of $107.1 million after an impairment of $86.5 million – it insisted its “turnaround” is on track, despite a challenging economy and media market.
MediaWorks has confirmed they plan to disestablish some roles as part of a restructure that is understood to impact dozens of staff across the business.
Media Insider understands a consultation process is being undertaken this week for some staff within the business.
One worker told Media Insiderthe changes put forward for consultation would affect teams throughout the company and that it was made clear MediaWorks was losing money.
The staffer said it appeared there are people who will “miss out on a job” following the changes.
A MediaWorks spokesperson told the Herald the changes come as the company attempts to “evolve and adapt with the changing market”.
“As part of this process we are reviewing the structure of some of our functions to ensure we are in the best shape to meet customers’ needs now and into the future,” the spokesperson said.
“The proposals include changes of reporting lines, the disestablishment of some roles and the creation of new roles. If roles are confirmed as disestablished we will also explore redeployment options in other areas of the business.
“These discussions are confidential and we do not intend to comment publicly while we work through the proposals together.”
It’s understood the rationale for the cuts includes MediaWorks, for the second year in a row, posting a statutory loss and that going forward ad spend remains depressed across the market.
Advertising for Today FM. Image / MediaWorks
Last year the grim future of MediaWorks station Today FM was revealed live on air by hosts Tova O’Brien and Duncan Garner.
Staff were given less than a full day to provide submissions on the future of the station but a company-wide email from MediaWorks CEO Wendy Palmer later in the day said the board would be closing the station from today.
“This does sadly mean that a number of our friends and colleagues will be leaving the business in the coming weeks,” she said at the time.
Earlier this year MediaWorks posted a net after-tax loss of $107.1 million after an impairment of $86.5 million – it insisted its “turnaround” is on track, despite a challenging economy and media market.
For the second consecutive year, auditors said “material uncertainties” exist which cast “significant doubt” on MediaWorks’ ability to operate as a going concern but the company says this was before refinancing was completed and it is confident it has the capital to deliver the company’s strategy.
Total revenue was $204.1m, a 5% drop from the previous year, but the company has also slashed costs – operating expenses were $11m less than those in 2022.
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Katie Harris is an Auckland-based journalist who covers social issues including sexual assault, workplace misconduct, media, crime and justice. She joined the Herald in 2020.
