The extreme state of disruption from AI has forced Nine Entertainment to cut 30 newsroom jobs at The Age and The Sydney Morning Herald, marking a significant shift in Australian journalism. Australia's largest media company announced the voluntary and targeted redundancies on Tuesday, with managing director Tory Maguire calling it an "evolution" to adapt to structural change.
Why AI Is Driving Media Job Cuts
Maguire told staff that the disruption caused by artificial intelligence surpasses that of the internet and social media. "The internet and social media did not disrupt us as much as AI," she said. This comes two years after Nine cut 200 jobs, including 90 positions from its legacy mastheads.
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The Scale of AI's Impact on Newsrooms
According to the Reuters Institute's Digital News Report 2026, 10% of news consumers worldwide now use AI chatbots to get their news. Among those under 35, the figure climbs to 16%. Additionally, Google's AI summaries are reducing click-through rates to news stories from search engines.
| AI Impact Metric | Percentage |
|---|---|
| Global news consumers using AI chatbots | 10% |
| Under-35 news consumers using AI chatbots | 16% |
| Australian journalism invisible in AI summaries (Microsoft Copilot) | Majority |
How Nine Is Responding to AI Disruption
Nine plans to retrain staff and hire for "digital-first, reader-savvy, data-informed roles." The Australian Financial Review, which has had a paywall since 2007, is more evolved in its digital approach and won't be affected by the restructure. The company is investing in AI adaptation strategies rather than simply cutting costs.
Key Takeaways for Media Professionals
- AI is causing structural disruption greater than the internet and social media combined
- Traditional newsrooms must evolve into digital-first operations to survive
- Younger audiences increasingly rely on AI chatbots for news consumption
- Google AI summaries reduce direct traffic to news websites
- Australian media faces invisibility in AI-generated summaries from global platforms
What This Means for Journalism Jobs
The University of Sydney research found that Australian journalism is largely "invisible" in AI-generated news summaries from Microsoft Copilot, which overwhelmingly favors US or European media. This creates a competitive disadvantage for local journalism and underscores the urgency for Australian media to adapt.
FAQ
How many jobs is Nine cutting due to AI?
Nine Entertainment is cutting approximately 30 newsroom jobs at The Age and The Sydney Morning Herald, through voluntary and targeted redundancies.
Why is AI disrupting journalism more than the internet?
According to Nine's managing director, AI is causing a more extreme disruption because it directly replaces human-generated content with AI summaries and chatbots, reducing traffic to news websites and changing how audiences consume news.
What percentage of people use AI for news?
The Reuters Institute reports that 10% of global news consumers use AI chatbots for news, rising to 16% for those under 35 years old.
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