Nine Entertainment, Australia’s largest media company, announced plans to cut around 30 jobs at the Sydney Morning Herald and the Age due to what it described as an "extreme state of disruption" from artificial intelligence (AI). The company’s managing director of publishing, Tory Maguire, informed staff on Tuesday that the layoffs would consist of voluntary and targeted redundancies. Maguire emphasized that the restructuring is not merely a cost-cutting measure but part of an evolution to adapt to significant changes in the industry.
AI Impact on News Consumption
Maguire noted that the media landscape has been profoundly affected by AI, stating,
The internet and social media did not disrupt us as much as … AI.
According to the Reuters Institute’s Digital News Report 2026, 10% of global news consumers utilize AI chatbots for news, with the figure rising to 16% among those under 35. Research from the University of Sydney indicated that Australian journalism is often overlooked in AI-generated news summaries, which tend to favor US and European sources.
Future Focus on Digital Roles
Nine plans to retrain affected employees and create new positions focused on digital-first, reader-savvy, and data-informed roles. The Australian Financial Review will not be impacted by the job cuts, as it is considered more advanced in its digital strategy, having implemented a paywall since 2007. This announcement follows a previous reduction of 200 jobs by Nine, including 90 from its legacy mastheads and the AFR, two years ago. Maguire reiterated that the company is in the midst of a major disruption caused by AI.
The job cuts at Nine Entertainment could influence the media sector, particularly in terms of employment trends and operational strategies as companies adapt to AI advancements. Investors will watch for further developments in Nine's restructuring plans and any potential impacts on its digital subscription growth.