Mirror publisher Reach wants to cut 200 jobs because it is cutting costs

Daily Mirror and Express publisher Reach is to cut 200 jobs as part of sweeping cost cuts after a slump in advertising revenue.

Shares of the company, which also publishes The i newspaper, fell by a quarter on Wednesday morning after a bearish update from bosses.

The company told staff it will shed more roles across its businesses in a bid to save £30million this year.

An internal email said: “Following the proposals we are announcing today, we anticipate that, regrettably, around 200 positions of current employees will be made redundant.”

Reach said it will reduce costs through “simplification of core support functions, gains in print and distribution supply chain efficiencies, and accelerated editorial duplicate removal.”

The publisher saw hundreds of journalists take part in strikes amid a pay dispute in August last year. Further action was halted after workers accepted an improved pay deal.

It came as the newspaper group said ad revenue had been “lower than expected” for the final three months of 2022 as customers cut spending around Black Friday and Christmas.

Reach added that the ongoing uncertainty in the economy has further weighed on “market demand” for advertising and campaigns.

Print advertising collapsed by more than a fifth, while digital revenues fell 5.9% in the three months ended December 25.

The company highlighted that circulation revenues improved by 1.8% due to price increases, but total revenues were still lower than expected due to the advertising slump.

As a result, operating profits for the past year will be below market expectations, the company said.

Jim Mullen, Reach’s Chief Executive, said: “We expect current market headwinds to continue into 2023 and as such have acted decisively and embarked on a further cost reduction plan.

“This will ensure we can maintain our strong foundation and continue to invest in our digital growth priorities, which will position us to capitalize strongly as the economic environment improves.”

Shares were down 26.2% at 80.78p on Wednesday morning after the update.

https://www.belfasttelegraph.co.uk/news/uk/mirror-publisher-reach-to-axe-200-jobs-as-it-slashes-costs-42278212.html Mirror publisher Reach wants to cut 200 jobs because it is cutting costs

Linh

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