The Daily Mirror and Express publisher have announced that they are going to cut jobs amid a slump in advertising revenues and shares plummeted by a quarter on Wednesday.
Reach have informed staff that they will be cutting roles across all sectors of the business in an attempt to secure £30 million in savings.
In an internal email, it reads, “Under the proposals we’re announcing today we anticipate that, regrettably, around 200 roles of current employees will be made redundant.”
In August 2022 hundreds of journalists took part in strike action over a pay dispute which was averted as a deal was struck, but the company has warned there will be further headwinds this year.
Reach said that uncertainty within the economy has place further pressure on “market demand” for advertising campaigns.
In the three months to 25 December, digital revenues had fallen by 5.9% with print advertising down by a fifth and as a result of price increases overall revenues were still lower amid a fall in advertising revenues and circulation has improved by 1.8%.
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.”
During 2022 operating profits were below market expectations and on Wednesday morning shares were 26.2% lower at 80.78p.
Chris Morley, Reach NUJ national coordinator said, “Reach’s announcement of big job cuts – on top of the shedding of journalists’ roles around the group over the last few months of 2022 – has come as a grim and unwelcome start to the new year.
“We are today urgently seeking more clarity on these proposals and where the company thinks it can make cuts without harming its core business.
“Our members are clear that for the company to succeed, it must protect the creation of quality journalism and original content and that means limiting as much as possible any cuts to editorial staffing.”