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The decision to end The Kyle and Jackie O Show was not deliberately engineered by KIIS-network owners ARN, senior company sources have said after the pair\u2019s new $200 million contract had contributed to hundreds of staff losing their jobs.<\/p>\n
The spectacular implosion of Australia\u2019s most expensive radio program<\/a> was confirmed on Tuesday night after ARN said Kyle Sandilands was in breach of his contract for serious misconduct after berating his co-star, Jackie \u201cO\u201d Henderson, on air two weeks ago.<\/p>\n The outcome has been labelled \u201copportunistic\u201d and a convenient exit to the record-breaking deal by senior industry sources, speaking to this masthead on condition of anonymity on Wednesday morning. ARN shares rose 3 per cent when the market opened on Wednesday.<\/p>\n But while ARN\u2019s senior executives had not responded to calls on Wednesday morning, a company source, speaking anonymously to address the situation candidly, said the breakdown of the show was down to Henderson, prompted by Sandilands\u2019 misconduct, rather than any financial decision-making.<\/p>\n Related Article Henderson has the company\u2019s full backing after she decided she could no longer work with Sandilands, making her contract and ability to deliver the show void, the source said. ARN has offered Henderson the possibility of a new show without Sandilands.<\/p>\n The cost of the pair\u2019s record-breaking deal, combined with their disastrous launch into Australia\u2019s most lucrative radio market, Melbourne, forced ARN to slash staff costs over the past 18 months so it could afford the new $20 million per year deal, which makes up two thirds of its on-air talent costs.<\/p>\n In 2025 alone the show\u2019s performance contributed to a metro advertising revenue dip of 16 per cent, or $28 million. ARN ceded ground to their key competitors Nova and Southern Cross in a market that only declined by 3 per cent overall.<\/p>\n While Sandilands has 14 days to \u201cremedy\u201d his allegation of serious misconduct, the company will begin assessing potential replacements in the Breakfast slot, with a likely return to city-specific presenting teams in both Melbourne and Sydney.<\/p>\n With the pair absent on Wednesday morning, fill-in presenter Kent \u201cSmallzy\u201d Small read out a company statement informing listeners of the situation.<\/p>\n \u201cSo for our KIIS listeners, we\u2019ve got some important news for you,\u201d Small said. \u201cJackie has given notice that she can no longer continue to work on the show with Kyle on breakfast. As such, Jackie has now officially left the show. Kyle has been given 14 days to remedy a serious breach of contract in respect of the show. He\u2019ll not be on air during this time. If that does not happen, that contract will be terminated. That\u2019s what I have been told and asked to read you. You\u2019ve officially heard it from us.<\/p>\n \u201cThere\u2019s a saying in showbiz that the show must go on. You\u2019re all back to work today. You\u2019re waking up living your life. My name is Smallzy. I am not here to replace either of them. I am just going to get us through \u2026 I love radio and as someone who has grown up listening to the Kyle & Jackie O show, it is as much a shock to me as it would be to you hearing it. But it is Wednesday morning and it is a new day, so let\u2019s go.\u201d<\/p>\n Shortly after 7am, Small and Brooklyn Ross, Kyle and Jackie O\u2019s newsreader, discussed the program\u2019s cancellation.<\/p>\n \u201cI don\u2019t think anyone can believe what\u2019s happened,\u201d Ross said.<\/p>\n \u201cI just wanted to check in on you,\u201d replied Small, who previously worked with Sandilands and Henderson at 2Day FM. \u201cI do really appreciate you being here this morning because obviously I only got the call late last night and I was like, \u2018Sure, whatever I need to do to keep the station on the air\u2019. But I appreciate you showing up and doing it because the people are listening right now \u2013 and it\u2019s a shock to them.\u201d<\/p>\n Ross responded: \u201cI was on the show for 12 years. Holy crap. And obviously great friends with Jackie and Kyle. And yeah, I just \u2026\u201d<\/p>\n<\/p>\n Related Article The finances behind the deal began to sour before the new contracts even kicked in at the start of 2025. In Melbourne, the station had more than 620,000 cumulative listeners in the final survey of 2023; after two years of The Kyle and Jackie O Show, that figure had fallen by more than 200,000 and with it, advertisers.<\/p>\n In August, ARN confirmed it had made 240 job cuts in the past year alone. Those have accelerated since and there were further cuts confirmed this week.<\/p>\n In the 2025 full-year financial numbers delivered last month, the company said it had cut employee benefits, meaning staff salaries, by $18 million to $121 million. This contrasted starkly to the on-air talent costs, which rose from $20 million to $30 million in the first year of the duo\u2019s new deal. The pair alone made up two thirds of ARN\u2019s total on air wages.<\/p>\n Pearman Media analyst Steve Allen told this masthead: \u201cARN has a very different management today compared to when [Sandilands\u2019 and Hendersons\u2019] contract renewal was negotiated. What was not explicitly stated in the company\u2019s half-year results, which was the downturn in revenue, was largely due to advertisers\u2019 disaffection and distancing themselves from the Kyle & Jackie O show.<\/p>\n Related Article \u201cThis dissolving of the partnership [between Sandilands and Henderson] and their headline show in Sydney and Melbourne, given the high cost of their contract, is potentially a huge relief to ARN under CEO Michael Stephenson [who took on the top job in January].<\/p>\n \u201cThis is not without its risks, however, it also offers ARN more potential flexibility,\u201d Allen said.<\/p>\n Prior to the Kyle & Jackie O show\u2019s failed expansion to Melbourne in 2024<\/a>, the program was crucial to ARN\u2019s financial success \u2013 as evidenced by the struggles that Sandilands and Henderson\u2019s former station, 2Day FM, has suffered in the breakfast slot since they were poached by ARN in 2013. The company paid a large sum to lure them \u2013 and in 2023, it signed the duo to a record-breaking $200 million contract<\/a>, to secure their services for another 10 years.<\/p>\n Staff \u2018relieved\u2019 after<\/p>\n Multiple sources at KIIS\u2019s parent company ARN, who are not authorised to comment publicly, have told this masthead they were \u201coverjoyed\u201d and \u201crelieved\u201d by the news.<\/p>\n One ARN worker told this masthead: \u201cWe\u2019ve been through hundreds of lay-offs since [Sandilands and Henderson] signed their contract at the end of 2023.<\/p>\n \u201cThe fact is, that outlay has never been justified by the ad revenue they were bringing in. Sure, Kyle and Jackie have always done well in Sydney but Melbourne has been a disaster. The initial idea was that we\u2019d introduce the show to Melbourne and then Brisbane before rolling it out nationally \u2013 but their performance in Melbourne was so bad that it effectively put the brakes on that plan, which forced the company to make all these severe job cuts.\u201d<\/p>\n In Sydney, where the Kyle & Jackie O show is ahead of all its FM competitors, the pair ended 2025 with 12.7 per cent of the available audience. But in Melbourne, they sank to a new low of 5 per cent, placing them in eighth position overall. (The first radio ratings survey of 2026 will be released in mid-March.)<\/p>\n \u201cI think it\u2019s fair to say this is a blessing in disguise \u2013 or maybe just a blessing, full stop,\u201d said one ARN insider. \u201cThe big risk is that KIIS will lose its No. 1 spot [on the FM ladder] in Sydney if Kyle quits or gets the boot, and that could create all kinds of problems. But you have to look at the bigger picture: we were locked into a $200 million contract that was effectively an albatross around the company\u2019s neck.<\/p>\n \u201cThis is a chance for a fresh start: it could be a financial reset, and it gives us the opportunity to reclaim some of the listeners we lost in Melbourne. Other companies have tried to network breakfast radio shows across different cities before, and it\u2019s never really worked. This is further proof that radio \u2013 especially in the crucial breakfast hours, where you make most of your money \u2013 needs to be local.\u201d<\/p>\n Another ARN employee, who is not based in the company\u2019s Sydney headquarters, said the impact of the job cuts was being felt \u201cin every ARN office around the country\u201d.<\/p>\n \u201cIt\u2019s noticeably emptier in here,\u201d the employee said, requesting that their working location be withheld to reduce the risk of being identified by management. \u201cThere are less sales staff, less experienced producers \u2013 some of them got the chop because they were highly paid, which meant we lost a lot of talent and institutional knowledge \u2013 and just less people overall. You come in every day and see these empty desks, and it\u2019s so disheartening.\u201d<\/p>\n NSW premier responds<\/p>\n NSW premier Chris Minn was asked about the split by ABC Radio Sydney\u2019s breakfast host, Craig Reucassel, on Wednesday.<\/p>\n \u201cYou went to Kyle Sandiland\u2019s wedding,\u201d Reucassel said. \u201cHow do you feel about the end of Kyle & Jackie O, premier?\u201d<\/p>\n \u201cI\u2019m surprised by it,\u201d Minns replied. \u201cI don\u2019t know the ins and outs of it, but I go on all of the [Sydney radio] programs and I\u2019ve known Kyle for many, many years. I think it\u2019s sad that these shows wind up.\u201c<\/p>\n When Reucassel suggested Kyle & Jackie O\u2019s demise was due to Melbourne not liking Sydneysiders, Minns joked, \u201cWell, they\u2019re snobs. At the end of the day, they\u2019re a pack of snobs. We all know that.\u201d<\/p>\n \u201cThere you go!\u201d Reucassel said. \u201cExclusive from the NSW premier: Melbourne are a pack of snobs.\u201d<\/p>\n What happened?<\/p>\n The trigger for the bust-up between Sandilands and Henderson occurred during a live broadcast on February 20<\/a>, sparked by a discussion about astrology \u2013 prompting Sandilands to question the work ethic of his co-host.<\/p>\n \u201cYou\u2019re off with the fairies, you are unfocused, you don\u2019t give a shit \u2026 everyone in this building has mentioned it to me,\u201d Sandilands said in response to Henderson dissecting the \u201cbirth chart\u201d of the disgraced Andrew Mountbatten-Windsor, formerly known as Prince Andrew.<\/p>\n Henderson decided to take a week off to \u201cgather her thoughts\u201d, but did not return on Monday as expected. <\/p>\n ARN was forced to employ additional censors after the Kyle & Jackie O show violated the industry\u2019s decency codes a dozen times in 2025<\/a>.<\/p>\n Last year, Sandilands told listeners he would not placate the program\u2019s Melbourne audience. \u201cWe\u2019re not just going to suck Melbourne off all day, every day,\u201d he said, declaring he\u2019d rather remove his show from the city entirely than tone down his controversial broadcasting style.<\/p>\n The pair, who began working together in 1999, are no strangers to controversy. When they were employed by rival network Austereo (now known as Southern Cross Austereo), they aired a stunt in which a 14-year-old girl was attached to a lie detector before being quizzed about her sexual history, leading her to divulge she had been raped when she was 12.<\/p>\n They also told a Cambodian-Australian woman they would bring her niece to Australia, only to reveal she would be put behind one of three doors \u2013 and if the woman failed to pick the right door, her niece would be sent home. After the woman chose the wrong door, she cried and begged until the hosts revealed her niece could stay.<\/p>\n Sandilands had previously drawn criticism after suggesting that beloved performer Magda Szubanski be placed in a concentration camp to lose weight; calling a journalist a \u201cfat slag\u201d before threatening to \u201chunt her down\u201d; and making fun of a disabled baby.<\/p>\n Last week, Sandilands rubbished reports that the Kyle & Jackie O show was coming to an end. \u201cIt just goes to show you can never believe what you read in any of the newspapers,\u201d he said.<\/p>\n Who could replace them?<\/p>\n Speculation has flown that popular podcasters Toni Lodge and Ryan Dunn, aka Toni and Ryan, have already been lined up to fill the potentially vacant seats.<\/p>\n But while they might be top of management\u2019s wishlist, a deal appears to be a long way from reality.<\/p>\n When asked by this masthead if there had been an offer from ARN and if so what was their response, the pair replied: \u201cFor $201 million we\u2019d consider it. But we\u2019d need TARPer approval for a decision like this and we\u2019re not sure there is any benefit for them.\u201d<\/p>\n For the uninitiated, TARPer refers to Tony and Ryan Podcasters, fans of their five-day-a-week show. And there are a lot of them, across multiple platforms (podcast, TikTok, YouTube, Instagram), with 75 per cent of them reportedly living outside Australia.<\/p>\n One industry insider estimates the pair are pulling in about $2 million a year from their efforts. While informed, the figure is necessarily speculative. But it does suggest that ARN cannot simply look at Toni and Ryan as an easy cost-saving response to the challenge – and enormous opportunity – that has suddenly opened up.<\/p>\n Our Breaking News Alert will notify you of significant breaking news when it happens. Get it here.<\/a><\/p>\n Save<\/p>\n You have reached your maximum number of saved items.<\/p>\n Remove items from your saved list<\/a> to add more.<\/p>\n![\"Kyle](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/99f467566bd118c501a4255c0ad42baa0559cfad53f34c7d8dd0102aa1f6c3da.jpeg\")
Kyle Sandilands and Jackie \u2018O\u2019 Henderson\u2019s long-time on-air partnership has disintegrated in dramatic fashion.Artwork: Matt Willis<\/p>\n![\"Kyle](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/1772549411_455_fe3d5eeaeb33b8d9c5b38623c72b1026383c35cf.jpeg\")
<\/a><\/p>\n![\"Visitors](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/cbf5801724681321838ee9aa7601e6319110d5059f9799e6610ee6f21dc5adc5.png\")
Visitors to the Kyle and Jackie O page of KIIS 1065\u2019s website were shown an error message on Wednesday morning.KIIS 1065Crisis acknowledged on air<\/p>\n![\"Kyle](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/1772592792_907_4c07f110918eb033c181b07a26ab2c9fea9714ba.jpeg\")
<\/a>What does it mean for the business?<\/p>\n![\"\u201cThere\u2019s](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/007dee559241432dedc233c1079f72fae94e5535.jpeg\")
<\/a><\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/58dde6cb9aab1422e23c96bd433d8ca3bea1be06.jpeg\")
The pair in happier times.Facebook<\/p>\n![\"Michael](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/02\/1771820353_497_8b93b8be212a928ceee12fce92a35c6ee193fdec.png\")
Michael Lallo<\/a> is a senior culture writer at The Age and The Sydney Morning Herald.Connect via X<\/a> or email<\/a>.![\"Calum](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/01\/1768870210_233_ed13c528ff29429d0a4267821595c52ca2cdc4cc.png\")
Calum Jaspan<\/a> is a media writer for The Sydney Morning Herald and The Age, based in Melbourne. Reach him securely on Signal @calumjaspan.10Connect via X<\/a> or email<\/a>.From our partners<\/p>\n","protected":false},"excerpt":{"rendered":"Updated March 4, 2026 \u2014 7:59am,first published 7:17am Save You have reached your maximum number of saved items.…\n","protected":false},"author":2,"featured_media":517222,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[43,44,41,39,42,40],"class_list":["post-517221","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-headlines","tag-news","tag-top-news","tag-top-stories","tag-topnews","tag-topstories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/517221","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=517221"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/517221\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/517222"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=517221"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=517221"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=517221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}