More jobs on the chopping block: Spotlight on redundancy

by HCA31 Jan 2013

Nine Entertainment look set to be the latest organisation with redundancies on the horizon following a companywide memo detailing a need to slash costs.

CEO David Gyngell sent the memo yesterday which addressed all staff, saying the Australian media sector continues to face unprecedented change, and in turn, significant financial challenges. “[In] our place we always call it like it is, rather than just how we would like it to be. And the reality is this: the environment remains difficult and we have to toughen up and find ways to save costs and operate more efficiently,” Gyngell said.

At this stage the company has refused to confirm how many jobs could go, but with new owners set to take the reins from next week, job losses appear imminent.

Getting the process right

It is no secret that poor handling of redundancies has been the undoing of countless organisations. According to HR consultancy experts at Randstad, poorly executed redundancies can have long lasting effects and damage relationships with both remaining and departing employees. More than this, a poor redundancy and outplacement experience can have a negative effect on an organisation’s employer brand and perception amongst future employees.

For those companies which will have to go through this process throughout the year, Randstad offered these tips:

Prepare for the situation, the questions and possible reactions: How you respond to employee enquiries will likely have long term implications on their confidence, future career path and your organisation’s employer brand.

Seek advice: Speak with a colleague who has previously handled a similar situation, or seek advice if there are uncertainties about best practice.

Have support onsite on the day: Have an impartial third party on site on the day – whether in the form of an outplacement consultant, HR manager or business coach, who can provide support to the employee receiving the news as well as the manager imparting the news.


  • by Sean Reddell, Blaze Unlimited. 4/02/2013 3:29:39 PM

    This may have already occurred but before laying off staff due to financial challenges perhaps engage them to help solve the problem. Who knows what they might throw up? I've seen some groups voluntarily reduce their hours across the board to save positions.

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