Television New Zealand has confirmed sweeping job cuts are planned, as the state broadcaster responds to major economic challenges and audience shifts.
In a statement this morning, TVNZ said it would begin consultation with employees tomorrow on proposed structural changes, which could result in a net reduction of up to 68 roles across all business areas (9 percent of fulltime equivalents). The company employs 700 workers.
Chief executive Jodi O’Donnell said tough economic conditions and structural challenges within the media sector are impacting revenue performance, and difficult choices need to be made to ensure TVNZ remains sustainable.
Affected staff are being invited to meetings tomorrow, but don't know whether their programmes are to be fully cut or face significant redundancies.
Staff from popular consumer affairs programme Fair Go, current affairs programme Sunday and youth news platform Re: News staff are understood to be affected, RNZ reports.
A source told The New Zealand Herald today that employees were receiving meeting invites on their computer, without any direct conversation with leaders. The Herald has been told of some staff being left distraught as they got an email.
Some say they found out about the job cuts via other media and criticised the company's "lack of transparency".
A union representing media employees, E tū, is "alarmed" by TVNZ's proposal. It fears its members won't get a fair go in consultation and plans to challenge the cuts.
The company's interim financial results last week showed its total revenue has fallen 13.5 percent from last year to $155.9 million and an interim operating loss of $4.6 million for the last six months of 2023.
The state-owned broadcaster's move comes just one week after Warner Bros. Discovery announced it would close Newshub at the end of June, with the loss of about 300 jobs.
A confirmed structure is expected to be finalised by early April.
'Incredibly unsettling': PM
TVNZ is government owned but commercially funded through advertising. Prime Minister Christopher Luxon told reporters today news of the job cuts was "incredibly unsettling" and he feels for staff.
"Clearly, all media companies here and around the world are wrestling with a changing media environment. It is unsettling and importantly we recognise that it's a tough day for people from TVNZ.
"I think all politicians of all parties probably think they get unfair treatment from the media. But the bottom line is, you play a very important role in our democracy."
When asked if there would be any help from the government, he replied: "No, as we've said before, we understand the media environment is tough and challenging for people.
"We understand there are fundamental long-term structural changes in media across the world. Media companies are having to wrestle and innovate to dream up new business models as things go increasingly digital."
Minister Shane Jones then interrupted, saying "a vibrant economy will be good for the media, bye bye", before walking off.
Luxon's comments were in contrast to ACT leader David Seymour who this morning, speaking to Newstalk ZB, called the media immature with a lack of self-awareness.
Former Prime Minister Helen Clark has suggested TVNZ may need public funding.
'Confronting day'
Chief executive Jodi O’Donnell said Friday would be a "confronting day" as affected staff were taken through proposals.
“TVNZ’s Executive team has focused on reducing operating costs over the last 12 months. Unfortunately, we’re now at the point where we need to reduce the size of our team to bring our costs more in line with our revenue," she said today.
“There are no easy answers, and media organisations locally and globally are grappling with the same issues. Our priority is to support our people through the change process - we’ll take the next few weeks to collect, consider and respond to feedback from TVNZers before making any final decisions.”
TVNZ’s news boss Phil O’Sullivan told staff in an internal email people would be given 24 hours’ notice prior to meetings with those whose roles may potentially be impacted.
"This is happening across all departments at TVNZ. This is devastating for those people invited to meetings and very tough for everyone else. Myself and our leadership team will be in those meetings tomorrow morning but we’ll hold an all NCA [news and current affairs] hui at 1pm tomorrow."
'Devastating news'
Miriama Kamo, presenter of current affairs programme Sunday, told RNZ today's announcement was "devastating".
"It's devastating not just for our business, it's devastating for... what it means for our wider society. Of course we saw Newshub go and that has really, I believe, dire implications for our democracy.
"When we start cutting into news programmes at our state broadcaster then that really speaks to how dire things are and I am very, very concerned about what the landscape looks like going forward."
A news staffer who spoke to RNZ on the condition of anonymity said the most disappointing part of the process was finding out there would be job cuts via other media, such as RNZ and The New Zealand Herald.
"Our bosses didn't have the decency to be transparent about what was going on. You know, they say that they've been forthcoming over the past month over what's going to happen in this company and whatnot - they haven't.
"So it'll be an interesting day tomorrow to see how widely the team's affected, and to see what sort of vision they have for TVNZ - because in the time that I've been working there they keep talking about this digital transformation, and I haven't seen any transformation yet."
They said the mood this morning was "pretty pissy", particularly from those affected and confirmed most of the cuts were happening in news, including possibly their job.
An organisation supporting news media staff says some employees were frustrated and upset at the broadcaster's communication over its plans.
Media Chaplaincy general manager Elesha Gordon said it was devastating for those whose livelihoods were on the line.
"No one really has a full picture of what's going on. I know that a lot of people are just feeling absolutely exhausted with the lack of information and feeling really upset."
Gordon said the proposed cuts are a cruel and unfair symptom of the industry's financial state - along with Newshub's expected 300 redundancies, some will struggle to find new work in the industry.
"We're going to see a lot of challenges down the line, in terms of people not being able to do jobs in the industry they've trained in, they've worked hard in, they adore."
Union plans challenge
A union representing media employees says it is "alarmed" by TVNZ's proposal, and fears its members won't get a fair go in consultation.
Negotiation specialist Michael Wood said this afternoon E tū would challenge the cuts "both in the interest of affected members and the wider public who rely on a well-functioning media".
"TVNZ has a responsibility, not just to the government as sole shareholder but to all New Zealanders, to lead a positive vision for the future of media. Our members are deeply concerned that there is no clear strategy developed to protect the TV functions at the heart of the whole TVNZ enterprise.
"As we've all recently heard about the decision to close Newshub, it is more important than ever to protect and enhance our local media. TVNZ's proposal is to do the opposite. Our members are passionate about their work and know the importance of a strong Fourth Estate."
Wood said having just a few days for consultation on the cuts would be "simply ridiculous".
"The workforce at TVNZ are the people best placed to work with the company to solve the problems and find a way forward that protects the vital role they play in our media landscape. In the past, E tū has worked with the company through change processes to successfully protect jobs, maintaining a strong platform for telling Aotearoa's stories.
"We need to do this again, and it starts with the company engaging, and not dictating. They cannot make the best-informed decisions without a genuine and thorough consultation.
"Every New Zealander has a stake in this decision, as it will have a huge impact on the quality of public media. TVNZ and the government, as the sole shareholder, must take a wider view that reflects the importance of this platform for everyone."
Simon Dallow presents the news at 6pm. Photo: RNZ
Cuts to news and shows?
TVNZ has made no secret of the fact that it is looking at all costs. It has cut back its executive and middle management numbers in recent months and it has been widely expected that its newsroom numbers would come under scrutiny.
The chief executive's statement today gave no details as to which areas of the business will be the focus of cuts.
It also did not mention if there would be cuts to programmes - there has been speculation main bulletin 1News at 6pm might be cut in half to 30 minutes and late-night bulletin 1News Tonight may also be affected.
The New Zealand Herald's Media Insider understands there is a heavy focus on news and current affairs, where at least 35 jobs could go. A hui for all news and current affairs staff will be held at 1pm on Friday.
Media commentator Duncan Greive told RNZ staff working on Fair Go, Sunday and Re: News have been invited to meetings tomorrow and told to bring support people.
Jobs at Māori language news programme Te Karere will not be cut, but the flow-on effect will most likely see the "TVNZ news recharges" that Te Karere has to pay increase. This could affect staffing later down the track, RNZ understands.
RNZ Mediawatch's Colin Peacock was asked by Morning Report today if he thought there was any merit in the idea that the evening news could be cut back to 30 minutes.
Peacock said most countries don't have news bulletins as long as New Zealand. "It's possible TVNZ considering something like that but if you have a news operation - the cameras, the studio, the personnel - what do you really save by shrivelling up a bulletin to a half-hour one?"
Shortland Street
In a recent interview with Media Insider O’Donnell said there were no “sacred cows” when it came to cuts.
Media Insider understands that includes one of the biggest of all - Shortland Street, TVNZ 2′s 7pm weekday hospital drama - which has been a staple of the New Zealand television diet for 32 years.
However, RNZ understands Shortland Street staff and crew have been sent an email this morning and they assume they are safe for now.
TVNZ fully funds the programme to the tune of millions of dollars a year (it stretches to eight figures but the exact costs are deemed commercially sensitive) and with no assistance from the likes of NZ on Air.
TVNZ chief executive's full email to staff
TVNZ chief executive Jodi O'Donnell has told staff Friday will be a "confronting" day at the state broadcaster.
Her full internal email:
“As our interim results announcement last week illustrated, tough economic and market conditions are impacting our revenue performance, and we need to make some difficult choices to ensure TVNZ remain sustainable.
“Tomorrow, the leadership team will share proposals which could result in a net reduction of up to 68 roles from across all business areas.
“I know this is not the news any of us want to hear, and it’s certainly not a message I want to deliver, but I want to be upfront with you and ensure that you hear it from me.
“TVNZers who may be impacted by the proposed changes will receive calendar invites today for consultation meetings tomorrow.
“The exec team has been focused on reducing costs over the last 12 months. Unfortunately we’re now at the point where we need to reduce the size of our team to bring our costs more in line with our revenue and ensure we’re the right shape and size as we continue to transform to meet the needs of viewers in a digital world. In developing the proposals, the Exec team have considered:
• the potential cost savings;
• the impact on viewers, revenue and audiences;
• fit with our shift to a digital first strategy and;
• the impact on our people.
“Tomorrow will be a confronting day for all of us here at Te Reo Tataki and it’s going to remain challenging as we work through the change process over the coming weeks.
“There are no easy answers and media organisations locally and globally are grappling with the same issues.
“Our intent is to confirm any changes by early April.
“Yesterday’s media speculation was disappointing but we know there will be public interest so we’ll be advising external media that we’re proposing changes in a release shortly.
“My priority is our people and supporting you through this. My commitment is I will continue to be upfront and open and available for anyone who wants to talk while being sensitive and respectful of the process and the confidentiality of TVNZers in roles proposed to be directly impacted.”
- ODT Online, NZ Herald and RNZ
