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Southern Cross Austereo to Cut 300 Jobs, Slash $150 Million in Costs Amid Revenue Decline
Southern Cross Austereo (SCA) announced on Thursday that it will eliminate up to 300 positions as part of a new cost‑reduction program that will remove approximately $150 million from the media group’s annual operating costs. The move comes after the company said market conditions had deteriorated materially more than expected over the past quarter and that group revenue for fiscal year 2026 (FY26) would be about $50 million lower than previously forecast.
The cost‑cutting initiative, which began today, is scheduled to be completed before the end of the financial year, giving the company just over two weeks to implement the reductions. SCA’s original plan had targeted $30 million in savings; the revised program now aims for up to $150 million, representing roughly 9 % of the company’s existing operating expenses.
SCA’s CEO, Rohan Lund, who took the helm in May after joining the board earlier in the year, said in a letter to staff that the decision was not taken lightly. He explained that “to create the space we need to deliver on the scale and trust of our audio, publishing and television platforms, we have no choice but to reset the cost base.” Lund added that the transformation would involve “incredibly tough choices regarding our team structures” and that the company would be saying goodbye to many “smart, talented, and hard‑working colleagues” who had helped build both businesses.
A short consultation period for voluntary redundancies in the newspaper division closed on Monday. Staff at West Australian Newspapers – which publishes The West Australian and the online outlet The Nightly – were asked to lodge expressions of interest, but the target was not met. Some employees in the TV newsroom have already been informed that their roles will be affected.
The job cuts follow the completion of SCA’s merger with Seven West Media on 7 January. The combined entity now owns the Seven Network, The West Australian, The Sunday Times, and a portfolio of regional radio stations. In a speech to Mumbrella earlier this month, Lund described the merger as a step toward a “lean” corporate structure across the newly‑merged Southern Cross Media Group.
Financial guidance has been revised downward. Revenue for FY26 is now expected to fall between $1.86 billion and $1.87 billion, compared with the previous guidance of $1.91 billion to $1.92 billion. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) has been cut to a range of $185 million to $190 million, down from an earlier $200 million to $220 million. Reported EBITDA is forecast at $190 million to $195 million.
Operating costs are projected to decline to between $1.67 billion and $1.68 billion, roughly 1.5 % below prior guidance and 3 % lower than the previous year. The $150 million savings program is expected to bring operating costs in line with the revised forecast.
SCA remains the largest radio broadcaster in Australia, operating 86 stations across the country. The company’s audio, television and publishing platforms are expected to continue delivering content to regional and remote audiences, but the cost cuts will reduce the workforce that supports those services.
The announcement follows a series of earlier restructuring moves, including a 38‑job reduction in 2020 and a 16 % revenue decline reported in the same year. The current cuts are the most substantial in the company’s recent history.
As the company implements the reductions, investors and analysts will be watching for how the changes affect SCA’s profitability and its ability to compete in a tightening advertising market. The company’s next earnings report, due in early 2027, will provide further insight into the impact of the cost‑cutting program.
In summary, Southern Cross Austereo is cutting up to 300 jobs and targeting $150 million in annual savings to address a $50 million shortfall in FY26 revenue. The cuts will be completed before the end of the financial year, with the company’s operating costs expected to fall to $1.67 billion to $1.68 billion.
The company’s leadership has emphasized that the restructuring is necessary to maintain the scale and trust of its audio, publishing and television platforms, and that the changes will be implemented swiftly to align the cost base with the revised financial outlook.
The cost‑cutting initiative, which began today, is scheduled to be completed before the end of the financial year, giving the company just over two weeks to implement the reductions. SCA’s original plan had targeted $30 million in savings; the revised program now aims for up to $150 million, representing roughly 9 % of the company’s existing operating expenses.
SCA’s CEO, Rohan Lund, who took the helm in May after joining the board earlier in the year, said in a letter to staff that the decision was not taken lightly. He explained that “to create the space we need to deliver on the scale and trust of our audio, publishing and television platforms, we have no choice but to reset the cost base.” Lund added that the transformation would involve “incredibly tough choices regarding our team structures” and that the company would be saying goodbye to many “smart, talented, and hard‑working colleagues” who had helped build both businesses.
A short consultation period for voluntary redundancies in the newspaper division closed on Monday. Staff at West Australian Newspapers – which publishes The West Australian and the online outlet The Nightly – were asked to lodge expressions of interest, but the target was not met. Some employees in the TV newsroom have already been informed that their roles will be affected.
The job cuts follow the completion of SCA’s merger with Seven West Media on 7 January. The combined entity now owns the Seven Network, The West Australian, The Sunday Times, and a portfolio of regional radio stations. In a speech to Mumbrella earlier this month, Lund described the merger as a step toward a “lean” corporate structure across the newly‑merged Southern Cross Media Group.
Financial guidance has been revised downward. Revenue for FY26 is now expected to fall between $1.86 billion and $1.87 billion, compared with the previous guidance of $1.91 billion to $1.92 billion. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) has been cut to a range of $185 million to $190 million, down from an earlier $200 million to $220 million. Reported EBITDA is forecast at $190 million to $195 million.
Operating costs are projected to decline to between $1.67 billion and $1.68 billion, roughly 1.5 % below prior guidance and 3 % lower than the previous year. The $150 million savings program is expected to bring operating costs in line with the revised forecast.
SCA remains the largest radio broadcaster in Australia, operating 86 stations across the country. The company’s audio, television and publishing platforms are expected to continue delivering content to regional and remote audiences, but the cost cuts will reduce the workforce that supports those services.
The announcement follows a series of earlier restructuring moves, including a 38‑job reduction in 2020 and a 16 % revenue decline reported in the same year. The current cuts are the most substantial in the company’s recent history.
As the company implements the reductions, investors and analysts will be watching for how the changes affect SCA’s profitability and its ability to compete in a tightening advertising market. The company’s next earnings report, due in early 2027, will provide further insight into the impact of the cost‑cutting program.
In summary, Southern Cross Austereo is cutting up to 300 jobs and targeting $150 million in annual savings to address a $50 million shortfall in FY26 revenue. The cuts will be completed before the end of the financial year, with the company’s operating costs expected to fall to $1.67 billion to $1.68 billion.
The company’s leadership has emphasized that the restructuring is necessary to maintain the scale and trust of its audio, publishing and television platforms, and that the changes will be implemented swiftly to align the cost base with the revised financial outlook.
