News Corp will cut costs at its Australian business by $40 million as the company confronts challenges in print advertising and continues its digital transformation.
Cost-cutting will take place across all aspects of News Corp Australia before the end of June.
Non-critical positions that are vacant will be closed and new rules pertaining to travel and entertainment costs will be introduced.
A redundancy program will be considered and resources are to be moved to areas that deliver the most value.
The announcement follows a global drop of 2 per cent in revenues to $1.97 billion published in News Corp’s 2017 Q1 results.
Executive chairman of News Corp Australasia, Michael Miller, pledged the company’s “commitment to journalism . . . while enhancing our focus on digital innovation and improvement”.
In an email to staff, Mr Miller said: “In the same way that other publishers are addressing the shifting market dynamic, we too have to examine how we best produce and distribute quality content for our audiences, and our advertisers.”
News Corp’s results for the three months ending September revealed an 18 per cent increase in revenue for the company’s Digital Real Estate Services segment.
Advertising revenues decreased 11 per cent in the News and Information segment as the share of revenue that is digital grew from 20 to 24 per cent compared with the previous year.
The News segment’s total revenues fell 5 per cent.
News Corp CEO Robert Thomson said the company had made “real progress as it continued to drive higher digital revenues and position the company for long-term growth”.
“While the quarter presented some obvious challenges, particularly in print advertising . . . our revenues were relatively stable, underscoring the strength and scale of our portfolio and shift to digital,” Mr Thomson said.
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