News keeping McKinsey busy, says Herald’s Samios

Jul 27, 2021 at 10:21 am by admin

Consultants have been back in at News Corp Australia, bringing back memories of when Kim Williams brought in Boston Consulting to rationalise the giant.

While the number of business units was cut to less than a third, it was Williams – who drew the ire of editors – that ended up as the casualty of the 2012 reviews.

This time McKinsey & Company is reported to have been helping Williams’ successor, executive chairman Michael Miller (pictured) on restructuring plans which have led to the cutting of 30-50 commercial roles.

The Sydney Morning Herald’s Zoe Samios quotes “sources … who spoke on the condition of anonymity” that the changes were implemented towards the end of the financial year.

A spokesperson told the Nine masthead News was “reshaping our commercial business to strengthen how we meet the changing marketing needs of our clients to ensure we have the right portfolio, products, skills and processes for the future”.

McKinsey is understood to have also undertaken a six-week project focussed on new growth opportunities last October, and worked on integration of Foxtel and Fox Sports in 2018-2019. Samios said industry sources told her that McKinsey were working on opportunities for Foxtel and its Kayo Sports and Binge streaming services.

Earlier, the service of consultants PwC and Deloitte last year preceded News’ closure of more than 100 regional print publications, with job losses spreading into national and metro news businesses. In May however, 100 new editorial roles including 30 cadet positions and 20 positions across digital local and regional mastheads were announced, their timing coinciding with deals with Google and Facebook partly under Australia’s bargaining code legislation.

Sections: Newsmedia industry


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