Sources close to Fairfax have hit back at reports the media company will cut nearly 6,000 jobs in order to restore profitability.
While Fairfax declined to comment, a source close to the media company told AdNews: “It's not even being considered, this is just one analyst's idea.”
Reports today suggest that analysts and fund managers have forecast job cuts at Fairfax Media off the back of print media's continued struggle with structural change as audiences are captured by a fractured market.
According to the reports, CCZ media analyst Roger Colman who has more than 20 years experience analysing media companies, suggests Fairfax Media should cut nearly 6,000 jobs, decreasing its workforce from 11,000 to 5,000 in order to increase profitability.
In May last year Fairfax announced that it would cut around 300 subediting jobs from The Sydney Morning Herald and The Age, outsourcing the work to Pagemasters, a subsidiary of AAP.
At the time, Fairfax CEO and managing director Greg Hywood blamed a "weak" ad market for the drop in revenue and struggles faced by the company.
The reports also follow stalled progress on the proposed joint printing venture between Fairfax and News Limited which was expected to be announced toward the end of next year and is touted to deliver savings of between $20 to $30 million.
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