Nova boss Cathy O’Connor confirms multiple redundancies
NOVA Entertainment is the latest commercial radio broadcaster to reduce its headcount amid a weak advertising market, Radio Today can reveal.
A spokesperson for the Lachlan Murdoch-owned media business confirmed the pending redundancies, fuelled in part by the economic impact caused by the global health crisis.
Radio Today understands that about 70 employees will be affected following an internal review, with all staffers notified during a virtual Town Hall meeting on Tuesday (August 11).
Affected employees will be notified of their future with the broadcaster over the next five weeks.
NOVA Entertainment’s chief executive officer, Cathy O’Connor, issued a statement this afternoon, saying the business has suffered an estimated fall in revenue of over 25% this year.
“The media industry has been particularly hard hit and we expect the downturn to continue for the next 12 to 18 months,” O’Connor said in the statement.
“As a result, we have reviewed every aspect of our business to reduce costs and increase efficiency while continuing to deliver for our clients and audiences.
“We will reduce costs by 9% with all areas of the business being impacted. As a result, some staff will, unfortunately, be made redundant.”
O’Connor also said the network will redeploy some affected heads into other roles within the group and that all departing employees will be paid above their entitlements.
Assistance will also be provided to those affected, including training courses to reskill or upskill and assistance to find new external positions.
“These decisions will protect our core business and ensure that our company remains strong and successful and is positioned for growth as the economy recovers,” she said.
Commercial Radio Australia revealed a significant dent in radio ad sales last month.
Commercial radio’s peak body announced that revenue for metro stations was down 20.39% last financial year and totalled $643.046 million to June 30, down from $807.701 million the year prior.
NOVA Entertainment also made about 15 staffers redundant last November.