NZME Job Cuts
On June 14th, 2023, New Zealand Media and Entertainment (NZME) announced plans to cut 200 jobs, or 12% of its workforce, as part of a cost-cutting and restructuring effort. The cuts will affect all areas of the company, including journalism, sales, and administration.
Reasons for the Job Cuts
NZME has been facing declining revenue and profitability in recent years, due to factors such as the rise of digital media and the decline in print advertising. The company reported a loss of $13.4 million in the first half of 2023, and it is forecasting a further loss in the second half.
The job cuts are intended to reduce costs and improve profitability. NZME expects to save $20 million per year from the cuts.
Impact of the Job Cuts
The job cuts will have a significant impact on NZME’s operations. The company will reduce the number of journalists in its newsrooms, which could lead to less news coverage and a decline in the quality of journalism. The cuts will also affect the company’s sales and marketing efforts, which could lead to a decline in revenue.
Reaction to the Job Cuts
The job cuts have been met with criticism from unions and media commentators. The unions have argued that the cuts will damage the quality of journalism in New Zealand. Media commentators have expressed concern that the cuts will lead to a loss of diversity and independence in the media landscape.
NZME has defended the job cuts, arguing that they are necessary to ensure the long-term viability of the company. The company has said that it is committed to maintaining high-quality journalism and that it will continue to invest in its digital platforms.
Conclusion
The job cuts at NZME are a significant event for the New Zealand media industry. The cuts will have a major impact on the company’s operations and on the quality of journalism in New Zealand. It remains to be seen how NZME will manage the challenges it faces and what the long-term impact of the job cuts will be.
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