Dublin-based Independent News & Media (INM) will cut jobs at its London-based Independent newspaper and Sunday sister title in a bid to slash costs as a global downturn hits advertising revenue, Reuters reported on Tuesday.
"It is anticipated that the final number of redundancies will number around 90, of which a sizeable number will be voluntary, and the total savings will be in excess of 10 million pounds ($15 million)," the group said in a statement, adding that the moves would come into effect by early 2009. The majority of redundancies would come from the editorial department. [Link]
"In common with newspapers around the world, the Independent and Independent on Sunday have been hit by a downturn in advertising revenue and this has prompted a major review of the papers' cost base," it said in a statement. INM is also looking at outsourcing some areas of the operation.
"This restructuring will produce a significantly lower cost base, which will allow our titles to weather whatever storms the next few years will bring," said Ivan Fallon, Chief Executive of INM's UK operations. Last month INM said the two London newspapers would start sharing some services with other UK publishers to cut costs and make editorial workflows more efficient.
INM, which also publishes the Irish Independent and titles in South Africa and India, has said it plans to sell its stake in Australasian radio and newspaper group APN News & Media Ltd to cut its debt by about 800 million euros ($1 billion).
According to a Press Associaiton (PA) report, the changes at the two newspapers, which employ a total of 430 staff, will be implemented by early 2009. Barry Fitzpatrick, national officer of the National Union of Journalists, said: "The scale of today's (Tuesday's) announcement will have come as a massive shock to our members at the Independent. [Link]
"Journalists' confidence in management at the moment is shaky at best, and far below what we would expect when entering into negotiations over any major restructuring. We need to see clear guarantees that there will be no compulsory redundancies." The union will meet the company for talks on Thursday.
