In a letter addressed to all staff today (12 March), TMG chief executive Murdoch MacLennan also announced that The Daily Telegraph and Sunday Telegraph, printed at Newsprinters' Broxbourne site, would move to a 24/7 publishing model.
He said: "We are going to have to restructure our editorial operation to produce a root and branch change in the way we function. To this end, it will be merged into one unfied operation, serving digital and print products on a 24/7 basis.
"This operation will require the very best digital talent available. We will therefore be creating around 50 new digitally-focused jobs over the next six months – a strong and positive sign of our faith in the future.
"Any such change of course also requires difficult choices, and regrettably we expect to lose around 80, mostly print-based, editorial positions."
MacLennan also announced an £8m investment to make digital products TMG’s "number one priority".
He said in the letter: "Over the past few years, we have gone a long way in beginning the process of change.
"However, it has not gone far, or deep enough. As a result, we must now complete our transition to a digital business. To do that we need to invest significantly."
TMG executive director of editorial Richard Ellis will act as director of content until a permanent candidate is recruited for the role created to "transform newsroom culture into a dynamic process with our digital products at its core".
The Daily Telegraph editor Tony Gallagher and Ian MacGregor, editor of The Sunday Telegraph, will both report to the director of content. TMG recently recruited Christopher Thorogood as chief digital officer as part of the change to "ensure that digital takes the leading role".
MacLennan blamed the difficulties of TMG’s commercial business for the restructure, including a sharp decline in print advertising over Q1 2013 and further contraction of newspaper sales. The recent ABC national newspaper figures revealed that circulation of The Daily Telegraph and its Sunday counterpart had shrunk by 7.2% and 6.5% respectively over the past year.
"This trend makes the reality facing us clear," MacLennan said in the letter. "We must adapt and transform how we function as a business and urgently diversify our revenue streams, to guarantee our position in the longer term.
"It’s an exciting prospect, and although there will be difficult days in the coming months, I would appreciate your understanding and support as we transform TMG."
In December, fellow publisher News International denied claims that it would similarly merge The Times and The Sunday Times.Tweet
