Southern Cross Media Group has launched a cost-reduction program that will see up to 300 employees exit before June 30, 2026, following deteriorating television advertising conditions that forced a downgrade to full-year earnings guidance.
Sources told Mediaweek an in-house AI tool is already being deployed across broadcast and digital teams.
The media group, formed from the merger of Southern Cross Media and Seven West Media (SWM) in January 2026, now expects FY26 underlying EBITDA of $185 to $190 million, down from previous guidance of $200 to $220 million.
Group revenue is forecast to be $1,860 to $1,870 million, approximately 2.5% below the previous guidance range of $1,910 to $1,920 million.
A redundancy consultation process is underway that could result in up to 200 positions being cut across Seven’s broadcast and print operations, with positions across Seven West Media’s print and digital mastheads – including The West Australian, The Sunday Times, and The Nightly – as well as the broadcast network expected to be affected, according to sources familiar with the process.
While staff will have the opportunity to volunteer for redundancy, forced departures are considered likely. Anxious employees say they have received little clarity from management on scope or timeline, with one telling Mediaweek they feared it would be “a bloodbath in the coming weeks.”
The broader program – which primarily affects mid- and back-office, corporate staff, and non-labour costs – targets annual run-rate savings of $145 to $150 million upon completion, building on $30 million in merger synergies already delivered ahead of schedule.
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It will result in a restructuring charge of around $20 million in FY26.
Managing Director and Chief Executive Officer Rohan Lund said the changes were unavoidable given current market conditions. “We must reset our cost base to meet current market conditions and capture the full benefits of scale across our trusted platforms for our audiences and advertisers, now and into the future,” said Lund.
“Unfortunately, this means saying goodbye to some talented colleagues who have helped build our business. We are deeply grateful for their contributions, and we are committed to supporting them through this transition.”
The timing is raising questions among staff. Sources have told Mediaweek the redundancy process follows the in-house development of an AI tool that automates the conversion of TV news content into web-ready copy and imagery within minutes.
According to one source familiar with the matter, the tool is already being deployed across both broadcast and digital teams. “It’s supposed to do all the grunt work, all the repetitive stuff,” the source said, adding: “at least that’s what we’re being sold.”
The development sits in pointed contrast to Lund’s own recent public statements. After his first official day as managing director and CEO, he wrote on LinkedIn: “The buzz of a newsroom was a great reminder about what we do. I have met so many talented people across publishing, radio, digital and TV.”
In a separate post, he reflected on a visit to the Austereo Sydney office: “What struck me was how seamlessly our radio announcers understand and connect with audiences in real time. That is the real power of being live.”
Many of those same people are now waiting to hear if their jobs still exist.
SCA also announced it expects to raise an onerous contract provision of $65 to $70 million against legacy TV content contracts, reflecting weaker trading conditions and structural shifts in the television advertising market.
The non-cash provision will be recognised through purchase price accounting arising from the SWM merger and is subject to finalisation of the year-end audit.
The company said utilisation of the provision would reduce reported non-revenue-related costs by around $5 million in FY26 and approximately $30 million in FY27, lifting reported EBITDA to an expected $190 to $195 million for the full year.
Despite the earnings pressure, SCA reported positive audience metrics across its portfolio. Total TV audience share rose 1.1 percentage points in the financial year to date through to the end of May 2026.
In audio, HIT ranked as the number one network for people aged 25–54 with a 19% share, while Triple M led for men aged 25–54 with a 22% share. The West Australian newspaper brand group recorded an average monthly unique audience of 3.36 million, with the national online publication The Nightly reaching an average monthly audience of 3 million.
SCA will provide a further update on FY26 results and FY27 guidance at its full-year results presentation, scheduled for 11 August 2026.
From Mediaweek