Nine Entertainment to cut 30 jobs at The Age and SMH amid AI disruption

Job Cuts at Nine Entertainment

Nine Entertainment announced on Tuesday it would eliminate around 30 positions at its newsroom operations at the Sydney Morning Herald and the Age. This decision comes as part of an effort to respond to 'extreme disruption' caused by artificial intelligence in journalism. Industry changes are prompting a shift in roles to focus on digital and data-driven journalism.

Background on AI Disruption

Managing director of publishing, Tory Maguire, emphasized the severity of the disruption during a staff meeting, comparing it to previous internet and social media challenges. Reports indicate that around 10% of global news consumers utilize AI chatbots for news, which affects traditional media engagement.

Reader Revenue Challenges

Nine's digital subscription revenue fell by 6% in the past year, and for the first time, reader revenue has stalled after three years of growth. The company is grappling with shrinking audience engagement due to AI's capabilities to summarize news, diminishing traffic from search engines.

Future Plans and Digital Strategy

The company plans to retrain existing staff while introducing new hires for roles focused on digital engagement. Despite these job cuts, the Australian Financial Review will not be affected, as it is considered more advanced in its digital strategy, having adopted a paywall since 2007. Maguire stated that this move is part of the company's evolution in response to changing media consumption patterns.