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Daily Mirror and Express publisher Reach PLC is to axe 200 jobs as part of major cost-cutting following a slump in advertising revenue.
Shares in the company, which also publishes The i newspaper, plummeted by 29% to 78.00 pence each on Wednesday morning after a downbeat update from executives.
The company told staff that it is cutting further roles across all parts of the business as it seeks to secure £30 million in cost savings this year.
In an internal email, it said: ‘Under the proposals we’re announcing today we anticipate that, regrettably, around 200 roles of current employees will be made redundant.’
Reach said it will slash costs through the ‘simplification of central support functions, supply chain efficiencies in print and distribution, and accelerated removal of editorial duplication’.
The publisher saw hundreds of journalists take part in strike action in August last year during a dispute over pay. Further action was halted after workers accepted an improved pay deal.
It came as the newspaper group said advertising revenues were ‘lower than expected’ over the last three months of 2022 as clients pulled back their spending around Black Friday and Christmas.
Reach added that continued uncertainty in the economy has weighed further on ‘market demand’ for advertising and campaigns.
Print advertising tumbled by more than a fifth while digital revenues dropped by 5.9% over the three months to December 25.
The firm highlighted that circulation revenue improved by 1.8% as a result of price increases, but overall revenues were still lower than expected due to the advertising slump.
Operating profits for last year will be below market expectations as a result, the company said.
Reach Chief Executive Jim Mullen said: ‘We expect current market headwinds will continue during 2023 and have therefore taken decisive action, putting in place a further cost reduction plan.
‘This will ensure we retain our strong foundations and are able to continue investing in our digital growth priorities, which position us to benefit strongly when the economic environment improves.’
By Henry Saker-Clark, PA Deputy Business Editor
Press Association: Finance
source: PA
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