News Limited will roll out a widespread restructure across its entire operations, with its digital functions to be integrated across the company, effectively ending News Digital Media.
News Digital Media will be rolled into one of the company's five divisions. Chief executive
Kim Williams said digital needs to be integrated across the business and
that all news needs to "do digital".
The company's 19 eastern seaboard divisions will be streamlined into
five divisions, News NSW, News QLD, News Victoria, The Australian and
NewsLifeMedia.
Williams said in a statement: "These state-based
and national divisions will be enabled to provide great journalism to
our customers. We will provide the best local stories and national
stories from across our entire network."
The media organisation will set up a new group dedicated to digital innovation called Innovation and Integration, to be headed by current News Digital Media chief operating officer Stuart Spiteri as part of its restructure.
Spiteri said to staff that News Limited needed to be more ambitious with its digital presence, noting that the company could not be comfortable with only a 12% market share of the digital advertising space. He added the company needed to boost its unique audience of eight million Australians online.
Spiteri said the company is currently losing $55 million a year in its digital operations across the country.
Redundancies are expected. Williams added: "We will upskill our central functions and eliminate wasteful duplication. The new model addresses areas where we have skill shortages and are duplicating functions. We will hire new people where required, but regrettably some roles will become redundant.
"At this stage we cannot say how many roles will be made redundant as full details will be resolved with the implementation. Although there will be retrenchments, many roles will be retired through natural attrition."
Williams confirmed News Limited had acquired Australian Independent Business Media which publishes Business Spectator and The Eureka Report. He said the acquisition of the business sites and its takeover bid of Consolidated Media Holdings demonstrates the company's commitment to investing in products 'valued' by customers.
He said he told Prime Minister Julia Gillard's chief of staff of the plans. He added major advertisers who had been told of the reorganisation were 'happy' about the changes and the Consolidated Media Holdings takeover offer.
The company it will also roll out a new $60 million computer system. The Daily Telegraph, The Australian and the Herald Sun will use the Methode publishing system, which manages print and online content.
Williams briefed internal management this morning and told them News
Limited remains committed to the print business, which he said sells 11
million copies a week.
He added in an internal email: "The leadership team and I will conduct a series of briefings with senior managers who will in turn brief their teams". It's expected the changes will take between 18 to 24 months to implement.
Today's announcement comes after months of speculation regarding the media company's future. When Williams took the top job in December last year, it was expected he would make drastic changes to the organisation.
One of the first casualties of the new regime was its magazine arm NewsLifeMedia's chief executive, Sandra Hook, who resigned suddenly. Shake-ups continued at NLM including the recent exits of high profile editorial staff such as Kirstie Clements and Richard Waller.
On Monday, The Australian's chief operating officer John Allan resigned his post.
It's been a tumultuous week for the Australian media industry as rival Fairfax announced a widespread restructure of its operations earlier this week. Among the cost-cutting measures includes the cull of 1,900 staff over three years and the closure of its Tullamarine and Chullora printing plants.
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