Radio New Zealand Cuts 58 Jobs After $11.8 Million Deficit
Radio New Zealand will cut 58 full-time positions following the discovery of an $11.8 million budget deficit caused by internal financial reporting failures.
Public broadcaster Radio New Zealand revealed an $11.8 million budget deficit for the year ending June, a figure that vastly exceeded the forecast loss of $470,000. The organization attributed the blowout to an organisational failure involving inaccurate internal financial reporting, the incorrect accounting of $2 million in land sales as income, and overspends related to staff costs and an office relocation in Auckland.
In response to the deficit, the broadcaster plans to cut the equivalent of 58 full-time roles—approximately one-sixth of its workforce—by March 2027 and reduce operational costs by at least 5%. These cuts follow a previous announcement three months ago of 25 to 30 role reductions. CEO Paul Thompson accepted responsibility for the result and will depart the organization on December 31.
RNZ Chair Brent Impey has commissioned an independent review into the broadcaster's culture and financial controls. The financial crisis follows the October resignation of CFO Hilary Parker and a breach of the Crown Entities Act involving an unauthorized $5 million overdraft.
The E tū union has criticized the job cuts, arguing that staff are being penalized for management's financial errors. Union Director Amy Hansen urged the organization to delay final cuts until a new government is formed following the recent election, asserting that RNZ has sufficient reserves to last through the current year.
