Jobs On The Chopping Block In Foxtel Restructure
Thirty jobs across promotions, production and commercial at Foxtel are reportedly hitting the chopping block as the pay-TV provider moves to consolidate the three entities to improve efficiency.
As reported by the Financial Review, the job cuts follow the restructuring announcement back in October which brought Felix, FNA Creative and Fox Sports Creative under the same roof.
Despite the thirty position redundancies, only twenty staff members are actually leaving, with several of the now redundant positions previously vacant.
Foxtel chief marketing and sales officer Kieran Cooney said in response to the changes that ‘cost management is an important focus at Foxtel as we continue to restructure for efficiency and new ways of working’.
The restructuring comes as News Corp finalises its refinancing of Foxtel, with the media organisation owning a 65% share of the TV provider.
The refinancing totalled $900 million worth of facilities, including $700 million worth of debt, with Foxtel securing further $900 million from Australian and international banks, including some that were in the original syndicate of debt holders, according to the AFR.
While News Corp remains committed to the Pay-TV Provider, it has recognised the decline of the industry as streaming takes over.
News Corp global CFO Susan Panuccio thinks the broadcast base was the primary revenue driver of the past.
Though it is still an important aspect, she did not think Foxtel was ‘pivoting fast enough, or quickly enough, into OTT’.
‘We have spent a lot of money looking at how we can restructure that business and have the right platforms’ said Ms Panuccio.
Foxtel currently operates its sport streaming business Kayo Sports with a subscriber base of 402,000 as of early November.
The company is also investing heavily into its drama and entertainment streaming service known as Project Ares, expected sometime in the first half of 2020.