oOh!media cuts 82 roles - finds $12m in savings

oOh!media has reported a 9% reduction in headcount, cutting 82 roles and identifying $12 million in annualised cost savings.

In a trading update ahead of its AGM, the outdoor media company reported March quarter revenue up 4% overall and 7% in Australia, slightly ahead of February projections. The June quarter is pacing similarly.

oOh!media said its first-half gross margin would be softer than anticipated, driven by industry-wide pressure on billboards.

oOh!media Managing Director and CEO James Taylor said the company was focused on strengthening its market position as out-of-home continues to grow.

“The Out of Home sector continues to benefit from strong structural growth, and we are executing our strategy to cement oOh!’s market leadership,” Taylor said.

“The launch of MOVE is a growth catalyst, clearly demonstrating the superior quality and unmatched scale of our network to advertisers.”

Taylor sharpens efficiency push

Taylor said the company had also identified further savings since February.

“Since February, we have identified $12 million in annualised FY26 run rate pre-tax cash savings and an array of related operational benefits.

“This unlocks further value for our customers and shareholders.

“While we note some advertiser uncertainty given the broader macro environment, we are pleased with our overall outlook and look forward to updating shareholders at this morning’s AGM,” Taylor added.

Taylor said he is confident further efficiencies will be identified.

Five months into the CEO role, Taylor said he is more convinced than ever about the quality of the oOh!media business and the size of the opportunity ahead.

oOh!media spokesperson on role cuts

An oOh!media spokesperson told Mediaweek that the changes were aligned with the company’s strategy to strengthen the connection between its network, operating model and customers.

“While these decisions are always difficult, they are necessary to ensure oOh! is well positioned for long-term sustainable growth.

The spokesperson added that 38 operational roles have been made redundant, 24 vacant roles will be removed, and 20 roles within the reo Retail Media team have been affected, as announced in April.

"All impacted employees have been informed and will leave the business by 30 June."

“Of the $12 million in savings we expect to deliver, including some capex reductions, around $6 million is attributable to headcount savings," the spokesperson concluded.

Takeover interest builds

As previously reported by Mediaweek, the update comes as oOh!media has rejected two takeover proposals from private equity bidders, saying the offers do not reflect the outdoor media company’s intrinsic value or in simple words, too low to even consider.

The company confirmed it had received a non-binding indicative proposal from I Squared Capital at $1.45 per share, following an earlier $1.40 per share offer from Pacific Equity Partners.

oOh!media has rejected both offers, but has invited talks or updated offers.

Top Image: James Taylor

Keep on top of the most important media, marketing, and agency news each day with the Mediaweek Morning Report, delivered for free every morning to your inbox.