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Representational image. Nine’s share price had been on the decline in 2024. Pixabay

Nine Entertainment, Australia's biggest media company, is set to implement AU$100 million in cost cuts over the next two years and hold individuals accountable for bullying or harassment, after an alarming report uncovered a widespread toxic workplace culture, according to interim CEO Matt Stanton.

Addressing the annual general meeting on Thursday, Stanton revealed that Nine expected to cut an additional AU$50 million in costs for the 2025 financial year, bringing the overall reductions close to AU$100 million over two years. The company had already implemented AU$65 million in cost for 2023/24, and in June announced plans to eliminate 200 jobs from among 5,000 employees, AAP reported.

The directors, too, faced opposition to their executive pay packages, as 37% of investors voted against the remuneration report.

"It is still early days, but there will be change at Nine and individuals will be held to account for behavior of this nature," Stanton stated. "The Board and management are absolutely united on the need to accelerate change and to support workplace reform."

The company's full-year results, released in August, revealed a nearly 30% decline in statutory net profits, which fell to AU$134.9 million for the 2023/24 fiscal year. Revenue also dropped by 3% to AU$2.6 billion.

In 2024, Nine's share price had been on the decline, starting at around AU$2 in January, while trading at AU$1.10 by Thursday.

It has been a challenging year for the company, marked by the departure of former news director Darren Wick in March following allegations about his treatment of women. Long-time chair Peter Costello resigned in June following an altercation with a journalist at Canberra airport, while chief executive Mike Sneesby stepped down in September.

The company released the Intersection report in October, which exposed widespread problems with abuse of power, bullying, discrimination, and harassment, including sexual harassment.

Catherine West, who took over as Nine's chair following Costello's resignation, was questioned about how she could have been unaware of the company's toxic culture after serving six years on the board.

West said that the staff previously denied having any problems when they were questioned by HR. However, in recent months, the employees had found the courage to speak up, she added, reported The Guardian.

"After we've done various investigations, they've come back and said to us: 'We just didn't tell you the truth, because we were scared of the power of an individual'," West said. "So with an individual removed, we need to stop that happening. People have accepted things that are not acceptable for far too long."

The company was adopting AI, Stanton stated, adding that more than 60 articles were generated using an AI-powered tool in September.

Meta's decision to withdraw from the news media code will impact the "availability of fact-based and credible news content," Stanton pointed out.

Regarding gambling ads, West stated that Nine did not fill all its available slots and assured that the company complied with advertising regulations.

Nine Entertainment owns some of Australia's biggest media platforms, including Channel Nine, streaming service Stan, talkback radio stations 2GB and 3AW, The Sydney Morning Herald, The Age and the Australian Financial Review.