AI disruption is reshaping the media landscape, as Australia's largest media company Nine Entertainment cuts 30 newsroom jobs at the Sydney Morning Herald and The Age. The move, announced by managing director Tory Maguire, highlights the extreme state of disruption caused by artificial intelligence in journalism.
Why Nine Is Cutting Jobs Due to AI Disruption
In a town hall meeting, Maguire told staff that the company is not just cutting costs but evolving to adapt to structural changes caused by AI. “In the last 12 months, as we have discussed many, many times at the publishing town halls, we are in an extreme state of disruption because of AI,” she said. The redundancies will be a mix of voluntary and targeted cuts, with plans to retrain staff and hire for digital-first, reader-savvy, data-informed roles.
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This follows a previous round of 200 job cuts two years ago, including 90 from the legacy mastheads and the Australian Financial Review. However, Maguire emphasized that AI represents a deeper shift than previous disruptions like the internet and social media.
The Role of AI in News Consumption
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 aged under 35, that figure rises to 16%. Additionally, search engines like Google are providing AI-generated summaries, reducing click-through rates to news articles. This directly impacts publishers like Nine that rely on referral traffic.
| Disruption Factor | Impact on Journalism |
|---|---|
| Internet & Social Media | Shifted readership online, but still drove traffic to sites |
| AI Chatbots & Summaries | Reduces direct clicks; content becomes “invisible” to users |
Research by the University of Sydney 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 systemic disadvantage for local publishers.
Key Takeaways from the Nine AI Job Cuts
- Nine Entertainment is eliminating 30 positions at The Age and Sydney Morning Herald due to AI disruption.
- AI is described as more disruptive than the internet or social media.
- 10% of global news consumers use AI chatbots; 16% among under-35s.
- Google’s AI summaries reduce click-throughs, hurting news publishers.
- Nine plans to retrain staff for digital-first, data-informed roles.
What This Means for the Future of News
The decision underscores a broader trend where legacy media companies must rethink their business models. The Australian Financial Review, which is unaffected by this restructure, has a paywall since 2007 and is considered more evolved digitally. Nine’s publishing division, along with Nine Television, Stan, and other assets, must now navigate a landscape where AI is both a threat and an opportunity.
FAQ
How many jobs is Nine cutting at The Age and SMH?
Nine is cutting approximately 30 newsroom positions through voluntary and targeted redundancies.
Why is AI causing job cuts in journalism?
AI disrupts traditional news consumption by providing summaries and chatbot answers, reducing direct traffic to news websites and forcing publishers to restructure.
What percentage of news consumers use AI chatbots?
According to Reuters Institute, 10% of global news consumers use AI chatbots, rising to 16% for those under 35.
As AI continues to evolve, media companies like Nine must balance cost-cutting with investment in new roles and technology. The shift is inevitable, but the impact on quality journalism remains a pressing concern.
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