News Corp Australia is set to embark on further cost cutting initiatives after seeing local advertising revenues decline.
The publisher posted its global 2017 quarter one revenues yesterday, which saw the business experience a 2.4% fall in revenue, with ad revenues falling 11%.
Speaking on the investor call, CFO for News Corp Bedi Singh said while the Australian business is benefiting from current cost cutting programs, there is still more to be done.
“We are now embarking on further cost initiatives. We expect an additional AUD$40 million in cost savings this fiscal year while we continue to push digital initiatives more broadly.”
To coincide with the investor call, local News Corp staff received an email about the proposed cost cutting, saying that while the publisher is proud of its success, it is also facing challenges.
“To offset those challenges, we will need to implement a series of cost initiatives across the business. This will allow us to continue our commitment to journalism in print and digital while enhancing our focus on digital innovation and improvement,” the email said.
The note outlined that in the short term, this cost cutting program will begin with an “immediate review of all vacant positions with the aim of closing positions that are not absolutely critical”. News said it will also introduce new business rules in relation to travel and entertainment costs.
“In the mid-term, we will consider changes to our business to ensure we work harder and smarter and move resources into areas which will deliver the most value to the business. In shaping more efficient structures, there is the possibility of a redundancy program.”
The publisher noted however these cost saving initiatives will allow the business to continue its “commitment to journalism in print and digital” while enhancing its focus on digital innovation and improvement.
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