News Corp Australia initiates restructuring program and axes jobs across commercial division
Australia’s largest media conglomerate, News Corp Australia has cut down about 30 to 50 commercial roles in recent weeks and hired McKinsey for its restructuring program. This is McKinsey’s second comeback to News Corp Australia in just 12 months. Prior to this, it was working with the publisher of the leading newspapers like The Australian, Daily Telegraph, and Herald. It was also associated with News Corp-controlled pay-TV company, Foxtel and successfully carried out the integration of Foxtel and Fox Sports in the past years.
Although McKinsey refused to make a comment on its association with News Corp, a spokesperson from News Corp Australia confirmed the ongoing restructuring process aimed at redesigning and strengthening the commercial business to satisfy the changing market needs and ensure the recruitment of right and exact portfolios and skills for the future growth of the company. This restructuring exercise will help News Corp position itself as a company focused on reading and subscribing to news online.
News Corp had also hired PwC and Deloitte for consultations and deliberations on cost cuttings, consolidation of editorial and commercial functions, and a review of the regional newspaper business last April. It also pulled a plug on more than 100 print publications to reduce advertising costs, causing the loss of up to 1000 jobs.
Upto June 2021, job losses due to cost cuttings were a common scene in Australia, The Daily Telegraph, and The Herald Sun. However, the News Corp sales division staff were exempted from the redundancy rounds. But it brought together staff from Metropolitan and other various regional and local publications under its head.
For corporate motives like mergers and acquisitions, News Corporation, News Corp’s global parent company, raised more than US $1 billion in debt from the private market. Michael Miller, News Corp Australia executive chairman affirmed that the money acquired from local acquisitions is directed to the New York financial investment team. Simultaneously with the two multimillion-dollar deals signed between News Corp and Google and News Corp and Facebook, the media company announced hirings in 100 new editorial roles which incorporate 30 cadet positions and 20 positions across digital local and regional mastheads.