Australia’s ABC to Cut Workforce by 10 Percent

SYDNEY: Australia's ABC is expected to ax around 400 jobs, which is close to 10 percent of its workforce, in an effort to eliminate "potential redundancy" as the pubcaster faces serious budget cuts, according to Managing Director Mark Scott.

Scott said that the corporation was committed to using back-office and overhead savings to fund the A$207 million ($178.8 million) that would be cut from the ABC’s budget from July 2015. This cut comes on top of funding reductions of A$120 million ($103.6 million) announced by the government in May.

“We anticipate that more than 400 people—close to 10 percent of our ongoing workforce—face potential redundancy as we adjust our activities over coming months,” Scott said. “We regard the changes as vital to securing the long-term health of the organization but I acknowledge that is no comfort to those who will lose their positions.”

The ABC's property holdings will undergo a comprehensive review, with its Lanceley Place site in Sydney to be sold and five regional radio outposts to be closed. The Adelaide TV production studio is also being closed and the remaining non-news TV productions will wind down in the remaining states. TV outside broadcast vans will be also be cut and TV sporting broadcasts will be scaled back.

The ABC also proposed the creation of two new divisions and a A$20 million ($17.3 million) digital investment fund. A new regional division will serve rural and regional communities, while ABC Digital Network will prioritize online and mobile.

In terms of changes for ABC News, Radio and Television, a new national 7.30 program on Fridays will replace the current State edition. Lateline moves to a new fixed slot on ABC News 24. There will be a restructuring of ABC's foreign bureaus to create multiplatform hubs and a new post is planned to open in Beirut. ABC TV's sports coverage will be overhauled, with a focus on national sporting events.

“The initiatives outlined by Mr Scott comprise a carefully considered response to the twin challenges of technological change and reduced funding,” the Board, led by ABC Chairman James Spigelman, said.

“They provide funds to invest in essential new online and mobile strategies that better connect the ABC with its audiences. Like the best media companies across the globe, the ABC is using its digital expertise to achieve deeper and broader audience engagement and relevance.”

“The message I will convey, both internally and externally, over the next few weeks is that the ABC cannot stand still and run the risk of becoming less relevant and compelling to this and future generations,” Scott said.

“What we are doing today is in the best interests of the ABC and its many stakeholders. It is designed to position the organization for the future.

“Working together, we can be confident in our ability to see through these changes and to build a stronger ABC.”