Warner Bros Discovery set to close New Zealand's Newshub service

Warner Bros Discovery has begun consulting with NZ employees to shut all of its multi-platform news operations. (Supplied: Newshub)

Dozens of media jobs are expected to be lost as the owners of New Zealand television station Three plan to close the broadcaster’s news service, Newshub.

Newshub employees were given notice of the intent to close in an all-staff meeting on Wednesday morning, the NZ Herald first reported.

Three is New Zealand’s only rival to public broadcaster TVNZ.

It was purchased in 2020 by American powerhouse Discovery, which merged with Warner Bros in 2022.

A company statement said it had begun consulting with employees on a proposal, including “the closure of all Newshub’s multi-platform news operations and output”.

“New local programming would only be in collaboration with local funding bodies and other partners,” it said.

Consultations on the closure will take place next month, with a final decision to be made by April.

Newshub operates with a punchy tabloid news-breaking style, often bringing journalists into conflict with the government.

Some of New Zealand’s most recognised and talented journalists work for the broadcaster, including political editor Jenna Lynch, Paddy Gower, Ryan Bridge and Michael Morrah.

While Wednesday’s announcement shocked employees and the media industry, it is not wholly unexpected.

The NZ arm of Warner Bros Discovery’s operations reported a $NZ34.8 million ($32.8 million) loss last year.

New Zealand is currently in a technical recession, with other media companies announcing job losses or hiring freezes.

“There was no single trigger that caused this, rather it was a combination of negative events in New Zealand and globally,” Warner Bros Discovery executive James Gibbons is quoted as saying in the NZ Herald.

“Advertising revenue in New Zealand has disappeared far more quickly than our ability to manage this reduction, and to drive the business to profitability.”

Mr Gibbons said the media industry in New Zealand and around the world is facing “some very tough circumstances”.

“While Warner Bros Discovery is a large global media company, each business is managed on its ability to sustain itself within the market it operates in [and] subsidising losses for ongoing years indefinitely is not sustainable.”

Three still plan to make local television content, as well as broadcast other series such as Married At First Sight Australia and The Block Australia.

AAP