AI disruption has forced Nine Entertainment, Australia’s largest media company, to cut 30 newsroom jobs at The Sydney Morning Herald and The Age. Managing director of publishing Tory Maguire told staff the cuts are driven by an “extreme state of disruption” from artificial intelligence, not just cost-cutting. The move follows 200 job cuts two years ago and highlights how generative AI is reshaping the news industry.
Why Nine is cutting jobs due to AI disruption
Maguire described the current environment as “the middle” of a major disruption caused by AI, saying “the internet and social media did not disrupt us as much as AI.” Nine plans to retrain staff and hire for “digital-first, reader-savvy, data-informed roles.” The Australian Financial Review, which already has a paywall since 2007, is more evolved and won’t be affected.
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The scale of AI’s impact on newsrooms
According to the Reuters Institute’s Digital News Report 2026, 10% of global news consumers now use AI chatbots for news, rising to 16% among those under 35. Search engines like Google are providing AI summaries, reducing click-throughs to news articles. Meanwhile, University of Sydney research found Australian journalism is largely “invisible” in AI-generated summaries from Microsoft Copilot, which favors US and European media.
| Factor | Impact on Journalism |
|---|---|
| AI chatbot adoption | 10% of news consumers use AI; 16% under 35 |
| Search engine AI summaries | Reduced clicks to original articles |
| Microsoft Copilot bias | Australian media underrepresented |
Key takeaways from the Nine job cuts
- 30 jobs to be cut from The Age and Sydney Morning Herald newsrooms
- Voluntary and targeted redundancies offered
- Retraining for digital-first roles is planned
- AI disruption is more profound than internet or social media
- Australian Financial Review unaffected due to earlier digital shift
Nine Entertainment is the largest locally owned media company in Australia, with publishing, television (Nine), streaming service Stan, and digital assets. The cuts signal a broader trend where legacy newspapers must adapt to AI-driven changes in how audiences consume news.
FAQ: AI disruption in media
What is causing Nine to cut jobs at The Age and SMH?
Nine cites extreme disruption from AI as the primary reason for cutting 30 newsroom positions. Managing director Tory Maguire said AI is disrupting the industry more than the internet or social media ever did.
How many jobs has Nine cut in total?
This round of 30 cuts follows 200 job cuts two years ago. The company is reducing headcount while retraining staff for digital-first roles.
How is AI affecting news consumption?
AI chatbots are used by 10% of global news consumers (16% under 35). Google’s AI summaries reduce clicks to news sites, and Microsoft Copilot often ignores Australian media in its summaries.
As AI continues to transform the media landscape, Nine’s job cuts are a stark reminder that traditional newsrooms must evolve or face irrelevance. Whether through retraining, paywalls, or new content strategies, the industry is navigating an unprecedented shift.
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