Crikey publisher warns of end to Meta funding as it cuts jobs
It's the first clear sign of a local media company preparing for life without funding from Meta as media code deals expire.
Private Media, the Melbourne based independent publisher of Crikey, has privately conceded that it does not expect to fully renew a lucrative agreement it signed with global tech giant Meta when it expires next year.
The concession, made in an all staff meeting to discuss job cuts driven primarily by a decline in advertising revenue, comes amid a rapid retreat from the news industry by Meta, and as a string of major Australian media companies including ASX-listed News Corp, Nine Entertainment Co. and Seven West Media, prepare to renegotiate deals worth $100 million with the tech giant next year.
Will Hayward, the chief executive of Private Media, yesterday told staff the company had no choice but cut about eight jobs across its business, largely in response to a challenging advertising market. The company, which also publishes SmartCompany, The Mandarin, and Inc Australia, employs about 50 people. News of the job cuts were first reported by the Australian Financial Review.
But on an all-staff call Hayward and chief operating officer Ai Mawdsley both conceded that another factor in the move was the fact the company does not expect all of the funding from Meta, the owner of Facebook, which it secured under the government's media bargaining code, will continue beyond next year.
