For cutting costs, are layoffs the best option?

Cuts to newsroom staff put spotlight on redundancies

For cutting costs, are layoffs the best option?

Are layoffs the best option when it comes to cutting costs? Channel Nine seems to think so, judging by its recent actions – but one expert says there are better alternatives.

Channel Nine announced that it is axing its Darwin television news bulletin, with the local service to be replaced by the network's Queensland bulletin seven nights a week, news.com.au reported.

Its Gold Coast newsroom will also see some changes, with the bulletin to be presented by a single newsreader, according to the report.

A total of 11 employees are affected by the changes, of which eight will be redeployed to other positions, while the rest were made redundant.

"We will retain a reporter and camera operator on the ground to tell the Territory's stories to a national audience," a spokesperson told news.com.au in a statement.

The spokesperson described the changes as "difficult yet necessary" to ensure that the network can "withstand external challenges."

"Through redeployment opportunities and current vacancies, Nine has significantly reduced the number of people impacted by this decision and we are supporting those employees through this process," the spokesperson added.

Reshuffling at Nine

These changes come after a reported broader organisational restructuring announced earlier this year in Nine Entertainment Co, the parent company of Channel Nine. The overhaul is part of the company's efforts to meet its cost-cutting target of AU$50 million for fiscal year 2025, Variety reported.

"Our new approach will better position the business to manage the challenging external environment and ensure the company is future-fit to sustainably deliver for our consumers, partners, shareholders, and people," said Matt Stanton, acting CEO of Nine Entertainment, to Variety.

Nine Entertainment laid off up to 200 employees in 2024, ABC News reported.

Mike Sneesby, who was the CEO at the time, said the company was "not immune to the economic headwinds impacting many businesses globally."

Alternatives to layoffs

When Elon Musk took over Twitter (now X) and cut 80% of its workforce, many sounded the alarm.

But that approach isn’t without risks, according to Eric Steele, chief revenue officer of SIB, a value acceleration firm.

“Layoffs and drastic cuts may offer quick savings, but they can destabilize teams, damage morale and hurt long-term performance. From our perspective, there’s a better way—one that doesn’t leave a trail of burnout and bad press in its wake.

It's possible to "dramatically reduce expenditures" without laying off employees through various measures, he said.

These measures include:

  • auditing vendor contracts
  • correcting billing errors
  • benchmarking costs. 

Steele further emphasised that efficiency should focus on optimisation, continuous improvement, and fostering strong supplier relationships. 

"These strategies don't just reduce costs—they create stability, ensuring businesses can grow without sacrificing their values or operations," he said.