ABC to slash 300 jobs as it moves retail stores online

Up to 300 jobs could be cut as ABC stores around Australia begin to close and set up shop online. According to the national broadcaster’s commercial arm, managing a large network of leased brick and mortar stores, including 50 Shops, is no longer sustainable as consumers increasingly make their purchases digitally.

Employees, a mix of full time, part time, contract and casual staff, were briefed on the decision via a national video hook-up last night. The head of ABC Retail Regina Hoekstra has said that staff welfare will be a primary focus for the team in the coming months as ABC Commercial begins the phased exit from its ABC Shop properties portfolio over the next year.

Managing director of the ABC, Mark Scott, explained this morning that the Shops have been operating at a loss in the last year, and that the shift in consumer trends has made it impossible to run the chain profitably.

“We cannot take money from broadcasting to prop up a retail business,” he told ABC News this morning.

Source: YouTube/ABC News

The announcement comes just months after the government announced a $254 million budget cut for the ABC, which saw approximately 400 jobs go. ABC Retail will now review its existing lease arrangements, and develop a revised retail model to market ABC Shop Online and ABC branded outlets in other retailers such as David Jones.

“The ABC Shops have been an important part of the ABC’s relationship with its audiences for the past 35 years and this decision has not been taken lightly,” says Robert Patterson, director of ABC Commercial. “However, this strategy will create a more cost effective, nimble and flexible approach to servicing customers.”

ABC Commercial creates, licenses and releases approximately 1,000 new consumer products each year. This includes DVDs, digital downloads, music and books.