Daily Mirror publisher to cut 200 jobs after profit warning

REACH said on Wednesday (Jan 11) its annual operating profit would miss market expectations and it would cut around 200 jobs, as the British news publisher struggles with weak digital and print advertising, knocking shares 24 per cent lower.

The owner of newspapers such as the Daily Mirror and Daily Express said it expected challenges to persist in 2023 and that it would start cutting costs to save at least £30 million (S$48.4 million).

As part of the savings drive, the company will axe about 4 per cent of its workforce, or around 200 jobs, including journalists and commercial teams, a spokesperson said.

Reach, which employs over 4,500 people, has informed employees that consultations would start immediately, he added.

“Near-term economic conditions remain uncertain, creating unavoidable headwinds for the whole sector, with advertising weakness and prolonged cost inflation,” the company said in a statement.

Businesses staring at a possibly lengthy recession and a worsening cost-of-living crisis are cutting back on their advertising spend to save costs.

Digital revenue fell nearly 6 per cent and print advertising revenue slumped about 20 per cent in the three months to Dec 25, hurt partly by lower campaign spends around Black Friday and Christmas. Circulation revenue grew by 1.8 per cent.

Reach said operating profit for full-year 2022 would miss analysts’ forecast by mid-single digit percentage.

Shares in the company, which lost two-thirds of their value in 2022, were down 24 per cent at 83 pence by 1341 GMT.

National World, which invests in news publishing businesses and was looking to takeover Reach, in November dropped plans to buy the publisher, citing unfavourable circumstances, without divulging the specifics. REUTERS