COST CONTROL

Hunt for budget savings to extend beyond public service

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Original article by Luke Kinsella, John Kehoe
The Australian Financial Review – Page: 6 : 3-Dec-25

Finance Minister Katy Gallagher says the federal government has asked cabinet ministers to identify the five per cent of spending across their portfolios that is deemed to be the lowest priority. Her comments at a Senate estimates hearing suggest that Labor is seeking to cut spending across the public sector, rather than just the public service. Meanwhile, data from the Australian Bureau of Statistics shows that public sector demand increased by 1.2 per cent in the September quarter, following two quarters of negative growth.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN BUREAU OF STATISTICS

Labor to slash $5.6b from public sector

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Original article by Luke Kinsella, John Kehoe
The Australian Financial Review – Page: 1 & 8 : 26-Nov-25

The cost of running the federal public service is expected to top $111bn in 2025-26, having increased by 38 per cent since Labor took office in May 2022. Cabinet ministers and public service heads have been directed to find savings in their budgets of up to five per cent, in addition to the existing ‘efficiency dividend’ of one per cent. It is estimated that a five per cent spending cut across the public sector would result in savings of about $5.6bn. Finance Minister Katy Gallagher has indicated that any savings are likely to be redirected to other policy priorities.

CORPORATES
AUSTRALIA. DEPT OF FINANCE

Squeeze is on for Nine executive to get more juice out of the fruit

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Original article by Sam Buckingham-Jones
The Australian Financial Review – Page: 17 : 19-Nov-25

Nine Entertainment’s streaming and broadcast division generated 78 per cent of the group’s revenue and two-thirds of EBITA in 2024-25, when Domain is excluded from the results; free-to-air TV accounted for the bulk of the division’s revenue. Nine’s managing director of streaming and broadcast, Amanda Laing, faces the challenge of cutting costs while managing both the decline of free-to-air TV and the growth of free and subscription-based streaming video. She recently retrenched 50 employees within the division, and has not ruled out further job cuts; however, she has emphasised the need to transform the division, rather than simply reducing costs.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC

Labor releases election promise costings including saving of $6.4bn from cutting more consultants

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Original article by Henry Belot, Patrick Commins
The Guardian Australia – Page: Online : 29-Apr-25

Treasurer Jim Chalmers released the federal government’s election policy costings on Monday. Amongst other things, Labor expects to reduce government expenditure by about $6.4bn over four years by further reducing the use of consultants and labour firms. Finance Minister Katy Gallagher says the proposed cutbacks will not affect the quality of the service provided by federal public servants. The government’s plan to increase visa application fees for international students is in turn expected to boost revenue by about $760m.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE

MinRes job cuts add to thousands lost in WA’s mining sector route

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Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 7-Aug-24

A spokesman for Mineral Resources has confirmed that the iron ore and lithium producer will reduce its head count, although the bulk of the job cuts will be at its Perth head office. Mineral Resources has not disclosed the extent of the job losses, although it is believed to be about 100. The move follows the company’s recent decision to mothball its high-cost iron ore mines in Western Australia’s Yilgarn region and a delay in the expansion of the Wodgina lithium mine. WA’s mining sector has already been hit by massive job losses in the nickel industry in 2024.

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MINERAL RESOURCES LIMITED – ASX MIN

Seven West axes three of its most senior executives in major shakeup

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Original article by Zoe Samios
The Australian Financial Review – Page: Online : 26-Jun-24

Seven West Media veteran Kurt Burnette is said to be among the company’s senior executives to have been retrenched as part of a cost-cutting program. Burnette joined Seven in 1990, and was most recently the media group’s chief revenue officer. Seven Melbourne’s MD Lewis Martin, who is also the head of sport, has also been made redundant, along with chief marketing officer Melissa Hopkins. Recent media reports had revealed that Seven plans to shed up to 150 jobs in response to a difficult advertising market and the looming end of a revenue-sharing deal with Facebook’s parent Meta.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, SEVEN NETWORK LIMITED, META PLATFORMS INCORPORATED, FACEBOOK

Mobile users to face hit in Telstra cuts

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 1 & 16 : 22-May-24

Telstra has revealed plans to reduce its global workforce by up to 2,800 before the end of 2024, as part of its plan to reduce costs by $500m via its T25 strategy. The telco has advised that the job cuts and other cost reduction measures will help to reduce its expenses by $350m by the end of the 2024-25 financial year; however, Telstra has conceded that it will fall short of the T25 target. Telstra’s enterprise division is expected to bear the brunt of the job cuts. Telstra will also increase the price of some mobile phone and internet plans.

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TELSTRA CORPORATION LIMITED – ASX TLS

Purge of consultants heralds public service jobs boom

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Original article by David Ross
The Australian – Page: 11 : 15-May-24

The number of federal public servants has increased from 173,142 to more than 197,000 since Labor took office in May 2022. The budget papers show that the number of public servants is forecast to rise by 12,042 over the next year, while this is on track to be 36,000 higher than in 2021-22. The growth in public service numbers is at least partly due to the government’s push to reduce the cost of using external consultants, with thousands of these roles to be converted into in-house positions.

CORPORATES
AUSTRALIAN LABOR PARTY

Lake Resources cutting jobs as lithium stabilises

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Original article by Matt Bell
The Australian – Page: 16 : 5-Mar-24

Australian-listed Lake Resources has advised that it is seeking a partner for its Kachi lithium project in Argentina, which will continue to be the company’s priority. CEO David Dickson says Lake Resources will seek expressions of interest from prospective partners, with a view to making a final investment decision on Kachi in 2025. Dickson has also indicated that Lake Resources will review its non-core assets and lithium tenements, while it will retrench about 50 per cent of its global workforce; the job cuts will be focused on non-core operational and administrative roles.

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LAKE RESOURCES NL – ASX LKE

Regional journalist jobs go in News Corp restructure

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Original article by Sam Buckingham-Jones
The Australian Financial Review – Page: Online : 13-Apr-23

News Corp Australia has declined to comment on reports that it may downsize its regional newspaper staff as part of a push to reduce costs. Sources have claimed that more than 100 regional journalist and editors were asked to attend an unscheduled video meeting on Tuesday afternoon which was hosted by national community masthead network editor John McGourty. He is said to have told them that jobs may be cut and some mastheads could be merged, but stressed that these are only proposals at this stage. News Corporation recently revealed plans to cut five per cent of its global workforce.

CORPORATES
NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS