Pacific Magazines is moving forward with its decision to outsource its sub-editing function to Pagemasters to meet cost reduction targets.
22 sub-editing staff across all brands will be impacted by the move, which includes New Idea, Marie Claire, Better Homes & Gardens and InStyle. Some of sub-editing staff are expected to remain within PacMags as part of the new structure.
AdNews understands Pagemasters will be discussing employment opportunities with current PacMags staff and staff that cannot be relocated are to be offered a redundancy package.
PacMags CEO Gereurd Roberts informed sub-editors about the possible shift to Pagemasters in an internal email last week.
“There decisions have not been easy to make, and I know they will be difficult for many of you also. They are in no way a reflection of the tremendous work, commitment and care these team members have always show,” Roberts said in the email.
“These changes will ensure that we continue to progress - that we have a profitable, financially secure business that is positioned to take advantage of all the opportunities that will present themselves in the future…… (and) that moving forward we have the capacity and capability to invest in building our brands and products, extending (those) consumer connections.”
PacMags remains confident the solution will adhere to its three-phase copy sub-editing process and its journalism will not be impacted.
AdNews understands the transition process to Pagemasters is expected to take up to six weeks.
The changes are part of a plan to reduce PacMags cost base before 30 June ahead of the publishing company’s direction and strategy plan for the next financial year.
The move is one of many introduced by Roberts since he stepped up to CEO in September last year as he looks to cut costs at PacMags. Last year he restructured PacMags' portfolio under six new categories, including food, family, home, fashion, beauty and health, which led to several magazine closures.
Outsourcing sub-editing is a common way of reducing costs at media companies. In 2011, Fairfax opted to outsource most of its copy subbing to Pagemasters in 2011. At the time, staff campaigned against the cuts, but ultimately Fairfax went ahead with the plans.
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