Sydney's Sunday Telegraph today reports that the show is an "unmitigated disaster", with producers and hosts desperate to leave.
Last Tuesday, the show drew just 1000 viewers, according to the OzTAM metering system.
It attracted an average daily national audience of around 28,000 people in recent weeks, with no viewers registered for Perth on two occasions. "It is an absolute disaster," said one source. "I've heard pretty much everyone on the show is looking for another job."
Henry has made no secret of problems on set; in an interview with media website Mumbrella last month, he said: "Where do I begin? You want everybody to be on the same page at the same time. If it is truly going to evolve properly it will take a long time to get to its best. It's a long, long way from its best now."
Appearing on Ten's The Project in June, Henry joked about the size of the studio audience: "It is just so nice to get the entire Breakfast audience in one room at one time."
Insiders say ongoing tension between Henry and his co-hosts lead to the departure of presenter Andrew Rochford last month. The show's executive producer Majella Wiemers also quit, with former TVNZ staffer Sarah Bristow taking her place.
Although well-liked, insiders say she will struggle with the extra responsibility.
"Being an executive producer is way too big a job for Sarah," said another source. "She can do an okay job but it is really above her."