Newshub staff have been left ‘gutted’ and close to tears after confirmation today that the news service will close after 35 years. These are the full transcripts of what bosses told staff.
Glen Kyne, Warner Bros Discovery’s NZ boss:
Hi everyone,
Thank you all for coming down. When we came together six weeks ago it was a terrible day, and today is just as difficult.
After the consultation we’ve all gone through, sadly, we have made the decision to close down many of our key operations.
I want to take the time to explain a bit about the decisions we’ve made and why we’ve made them.
When I last spoke to you, I talked about how $100 million had come out of the broadcast TV advertising market in the last two years.
You may have seen the numbers that came out earlier this week.
In 2023 alone, $74 million disappeared from broadcast TV advertising.
This was the biggest drop barring the GFC since we started collecting this data in 1991. With this massive reduction in broadcast TV advertising revenue, our free-to-air and news operations were simply too expensive to run as they were.
We are deeply aware of the effect this is likely to have on the plurality of media voices in New Zealand.
But as we said, it is simply impossible to continue operating in our current form. You may have read some news about rumours of a deal with another media company.
As we said, we would listen to all parties, internal and external. Our door has been open to discussions, and some conversations have taken place.
They are continuing to take place in confidence and at this stage there is no deal. If there is to be a deal, it is my promise that we will let you all know directly about anything that happens as soon as we are able to.
In terms of the consultation, I’d like to echo James’s sentiment and say a sincere thank you to all of you who submitted feedback on the consultation.
We heard you regarding the preservation of the archive. We agree that this has great historical significance and needs to be preserved and it is our intention following today to engage Ngā Taonga to explore how that can happen.
We envisage this will take some time to work through.
As James said, the first day of the new business model will be on July 6. We didn’t want to end on a Sunday and so we were looking for the most appropriate and workable date around that time, and we listened to a lot of feedback on the preferred end date.
So because of that, we made the call to push out the final bulletin date from June 30 to July 5.
As James said - everyone here at WBD has done everything right.
The reason this step must be taken is because of economic factors that have put our operating model into deep crisis and I can’t thank you enough for the work you’ve all put in.
Not just over the consultation period but in all the years we’ve been working together. I’ve never been more proud of this team over the years and it’s been a genuine privilege to work alongside each and every one of you and there is no question that this difficult decision impacts all of us across the organisation. I want to acknowledge the incredible role Newshub, the extended NewsHub family and prior to that Three News has played in not just our lives, but in shaping our nation over the past 35 years.
I also want to acknowledge the incredible people that have been part of our business across:
You are all brilliant people, you’ve made a positive difference to the business and to my joy of working with you all over the years.
Warner Bros Discovery APAC president James Gibbons opened the meeting with this speech:
Good morning everyone,
Six weeks ago today we brought you here to deliver difficult news about the future of WBD’s free-to-air business in New Zealand.
At the time - and it is still true - I said that there was nothing anyone in our networks business could have done better.
The reason for proposing a new structure was a combination of very strong economic headwinds both in New Zealand and the global market.
Last year we saw a 14.3 per cent drop in total broadcast TV advertising revenue. Against this economic backdrop, we’ve come to the end of our consultation process.
Broadly speaking, what was proposed to you back in February is what we are moving forward with.
The new model will be a smaller operation, but a more viable – and importantly, sustainable – business model in the New Zealand landscape.
The number of roles is reducing dramatically. As it stands, the new model will employ 120 people.
This is a reduction of nearly 250 people, with approximately another 45 unfilled vacancies.
Of those impacted, nearly 150 people are from news.
Another 100 come from the rest of the business, from teams like:
I want to thank you for the time and effort you put into the consultation – we know it wasn’t easy.
Your feedback was incredibly valuable. It’s important to say up front that we could not implement all of the recommendations you put forward.
But every single piece was read and closely considered. I have gone through them all myself. I know the leadership team, as my delegates, have also read each piece carefully.
There were multiple workshops where the feedback was reviewed and discussed at length.
Different options were tested based on what you suggested. So I’m here today with Glen and Kylie to confirm the new business model and the next steps.
As I noted, the future structure will see a significant reduction in our headcount and a very different output.
It will sadly see the closure of all Newshub’s multi-platform news operations and output, including the Newshub website, AM, and the 6pm TV bulletin.
Three and ThreeNow will stay a key part of Warner Bros. Discovery’s local offerings. Bravo, Eden, Rush and HGTV will remain as they are.
The content available will be a mix of local programming in conjunction with funding partners, acquisitions, and key titles from WBD’s extensive library.
Those impacted will have their final day on July 5, that will also be the final day for our Newshub bulletin.
Some specific roles will be extended on a temporary basis. The first day of the new business model will be on July 6.
We know this change is significant and though you may have expected this, it will still be sad news to hear.
This new operating model is the only way we could see as a viable path for us to continue in the New Zealand market.
It is a major change that will mean we can continue to be a part of the media landscape in this country. I’d like to thank you all again for your input into the consultation process. Your support for each other during this time has been inspiring.
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.
Who's in line for influential TVNZ role?; $1 sales: Five NZME community newspapers saved.