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Southern Cross to Cut Hundreds of Jobs at Seven After Profit Downgrade

The company says deep cost savings are needed to stabilise earnings as TV advertising falls and trading disappoints.

Overview

  • Southern Cross announced a cost‑reduction program targeting up to $150 million in annual savings and the loss of about 250–300 roles, a figure the company has disclosed to the ASX.
  • The group downgraded its expected underlying EBITDA to $185–$190 million and flagged $65–$70 million of write‑downs on legacy TV content contracts.
  • Management said most cuts will come from the Seven West Media side of the business, and a short voluntary redundancy round in the newspaper arm failed to attract enough volunteers, making forced redundancies likely.
  • New chief executive Rohan Lund, appointed in May, has pushed for a rapid reset of the cost base, the board has approved the program, and a chair replacement is due at the end of June.
  • The moves reflect a wider industry squeeze — TV advertising fell sharply this year — and could reduce newsroom capacity, alter programming costs and further pressure the merged group's market value.