Guardian Media Group will restructure the less profitable parts of its business and cut 250 jobs, including 100 from editorial, in a plan to ensure the company breaks even within three years. The publisher of The Guardian and The Observer is expected to cut its UK workforce by 18 per cent as part of its plans to reduce operating...
The publisher of The Guardian and The Observer is expected to cut its UK workforce by 18 per cent as part of its plans to reduce operating losses of £58.6m in the year to the end of March.
The publisher hopes to fill the 250 job cuts through voluntary redundancies and will leave an additional 60 editorial and commercial positions unfilled, with its total workforce to be reduced by 310.
An email sent to staff by editor-in-chief Katherine Viner and chief executive David Pemsel said the volatility of the media environment had led to an “urgent need for radical action”.
“Our plan of action has one goal: to secure the journalistic integrity and financial independence of the Guardian in perpetuity,” they wrote.
It follows the publisher’s announcement in January that it will cut costs by 20 per cent after reporting a 25 per cent decline in print revenues and lower than expected growth in online ad revenue (LINK).
Tribune Publishing, owner of Los Angeles Times and Chicago Tribune, is set to acquire two Californian newspapers for $56 million although the sale might be blocked by the US Department of Justice.
The publisher recently won a three-way auction for Freedom Communications, owner of the Orange County Register and Riverside Press-Enterprise, at a public bankruptcy auction.
Hours after the deal was announced, the Justice Department sought to block the acquisition, arguing that acquiring the Los Angeles Times’ most significant competitor would give Tribune a monopoly over newspaper sales in the area, according to The Wall Street Journal.
The sale will be subject to a bankruptcy-court approval hearing on March 21.
Apple’s news aggregation app is now open to all publishers after the platform launched last year with a select group of publishing partners, including News Corp Australia and Fairfax Media.
The tech giant also unveiled a new ad format for sponsored and native content.
While native content will be feature alongside articles in the app’s content feed, it will be distinguished by a small “sponsored” callout with the optional addition of the sponsor’s name.
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