Foxtel axes another 70 jobs in latest restructure
Rupert Murdoch’s pay TV provider Foxtel is making a further 70 staff redundant as part of a restructuring aimed at creating a business that can compete more aggressively with global streaming platforms.
The redundancies impact Foxtel and Fox Sports’ marketing and creative divisions and are the third major round of job cuts to take place at the business this year.
“These are changes we had to make to face up to the impacts of COVID-19 on our business and a very different future for everyone involved in the media, entertainment and sporting industries,” a Foxtel spokesman said.
“The changes in marketing and creative reflect a new way of working following the merger of the Fox Sports and Foxtel teams last year that is now seeing us reduce our internal creative spend and centralise, outsource or consolidate some marketing functions.”
Foxtel chief executive Patrick Delany last month made 200 employees redundant and stood down 140 until the end of June, telling the company it had to “act now” to adapt to the declining revenue caused by the COVID-19 pandemic. The redundancies were in addition to a round of cost cutting at Fox Sports earlier this year.
Foxtel employed about 2500 staff until last month, but sources have indicated the company is trying to reduce its staff count to less than 2000. Consultancy Deloitte had been working for the pay TV operator before the redundancies were announced.
The company was facing competition from online streaming services including Netflix, Amazon and Disney+ before the pandemic hit and severe declines in advertising revenue and suspension of sports competition caused by the COVID-19 pandemic has added further pressure to the business. Subscribers have also attempted to quit the service or sought discounts due to suspensions of high profile sporting competitions.
Foxtel is trying to renegotiate sports deals with the NRL, Cricket Australia and the AFL and to secure an extension on a multi-million content deal with WarnerMedia’s HBO.
Television sources previously told The Sydney Morning Herald and The Age that WarnerMedia, which owns HBO, has given Foxtel and rival streaming service Stan, owned by Nine Entertainment Co, until early May to formalise bids for its content, which includes hit shows such as Succession, Game of Thrones and Big Little Lies. Securing HBO content is crucial for Foxtel as it prepares to launch its new entertainment service known as Binge in the next four to six weeks.
Zoe Samios is a media and telecommunications reporter at The Sydney Morning Herald and The Age.
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