UK's Daily Mirror owner, Reach plc, is set to cut approximately 450 more jobs, equivalent to about 10% of its workforce, in an effort to counter anticipated "inflationary pressures" expected in
2024. This media conglomerate, which also encompasses the Daily Star and the Daily Express, had previously implemented significant cost-cutting measures earlier this year, resulting in the reduction of around 200 jobs, with the objective of slashing expenditures by 5-6%. However, the company has now announced further job reductions to "bolster its standing as a leading digital publisher" and to safeguard against the anticipated impact of inflation in 2024. These additional cuts aim to achieve an additional 5-6% reduction in costs.
At the end of 2022, Reach employed 4,305 individuals, although this figure preceded the previous round of job cuts, which included 2,862 journalists. The job cuts are expected to affect both editorial and commercial roles.
Reach has been at the forefront of employing artificial intelligence (AI) to generate articles instead of human writers. CEO Jim Mullen disclosed that the company had already begun publishing AI-authored articles on the local media platform "In Your Area" following its first-quarter earnings report. Nevertheless, a company spokesperson clarified that the job cuts are unrelated to the rise of AI.
Jim Mullen commented, "Our industry has a history of change, and the future will undoubtedly involve yet more. That's why it's essential we set ourselves up to succeed by aligning our operations with an increasingly fast-paced, competitive, and customer-centric digital world."
He continued, "The hard work over the last few years has positioned us as a leading digital publisher. However, there is more work to be done, and today's announcement is about restructuring our business to meet that challenge."
Reach plc stated that the cost savings from these job cuts will enable the company to fulfill its long-term plans while continuing to invest in enhancing customer value, developing online products, and expanding its audience.
The entire newspaper sector has faced challenges recently, with print operations grappling with elevated expenses due to surging newsprint prices, while publishers' digital divisions contend with shifts in major social media platforms that have led to a reduced emphasis on news content.
Reach plc did not disclose the specific types of roles or the locations affected by these job cuts. Text: The Daily Mirror, Image: Victor Console, Wikimedia commons.