The news publisher had committed to a 5-6% reduction in its operating costs for 2023 to help strengthen its position as a leading digital publisher, and to mitigate against the backdrop of continuing inflationary pressures it expects to impact 2024.
In a statement released yesterday (8 November), it said this programme was on track to be delivered. The job cuts, according to the group, will enable it “to deliver on its long term plans, while continuing to invest to drive better customer value, develop online products and grow new audiences”.
Chief executive Jim Mullen said: "Our industry has a history of change, and the future will undoubtedly involve yet more. That's why it's essential we set ourselves up to win, by making our operations suited to an increasingly fast-paced, competitive, and customer-focused digital world.
“Hard work over the last few years means we have established ourselves as a leading digital publisher. But there's more to do and today is about organising our business to deliver against that challenge.”
The company, which employs around 4,500 people, said the cuts would deliver a 5-6% in-year reduction in the operating costs for 2024 as part of its ongoing planning process.
Reach publishes more than 130 brands, from national titles like the Mirror, Express, Daily Record and Daily Star, to local brands like the Manchester Evening News, MyLondon, and BelfastLive plus several recently launched US titles.
The business was previously hit by huge increases in the price of newsprint, but in July had said this was easing and that it had also broadened its newsprint supplier base for “more flexible supply”.
The company’s latest announcement marks the third round of job cuts at the publisher this year.
At the beginning of the year Reach issued a profit warning and said that 200 jobs would go across the group as part of plans to save £30m.
When the group then released its year-end results in March, it announced a further programme of cost cutting with the result that 420 jobs were at risk at that point.
The National Union of Journalists (NUJ) said 320 roles within editorial are set to be cut and Laura Davison, NUJ national organiser, commented: “Today’s announcement comes as yet another blow to Reach journalists who have adapted at pace to company demands. Members will be understandably shocked at the scale of redundancies, particularly with previous rounds already withstood in recent months and in the run up to Christmas.
“Reach’s efforts to address economic challenges must not come at the expense of journalists who fear for their job security and the impact of quality journalism only able to thrive with the experience and talent of staff.
“We will be liaising with both our reps and the company to ensure the best possible outcomes for members at this immensely difficult time. Reach must act in the spirit of genuine and meaningful engagement, allowing for a flexible and transparent consultation process that dedicated journalists deserve.”
The Telegraph has reported that Reach will reinvest some of its savings into hiring social media influencers “in a bid to target younger audiences”.
Reach’s share price initially climbed by 0.5% after the announcement yesterday but then quickly fell back. At the time of writing at lunchtime today (9 November), it stood at 78.65p, up 1.09% on yesterday’s close (52-week high: 122.5p, low: 65.2p).
