News Corp to axe hundreds of jobs

News Corp Australia is considering axing hundreds of jobs across its regional and metropolitan divisions as part of a broader restructure aimed at cutting costs and consolidating its editorial and commercial operations.

Sources close to News Corp who spoke on the condition of anonymity said the company could announce a large round of redundancies as soon as Thursday in yet another blow to the local media sector which has experienced a series of newsroom closures and job losses during the coronavirus crisis.

The sources said the cuts were designed to help the business - whose titles include Sydney's The Daily Telegraph and The Adelaide Advertiser - embrace digital audiences and adapt to large declines in advertising spending caused by the COVID-19 pandemic. News Corp declined to comment.

Sources close to News Corp estimated between 500 and 1000 jobs could be axed. The Sydney Morning Herald and The Age revealed last month that consultancy Deloitte had been hired to help News Corp change its business model and embattled regional publishing division.

News Corp is planning to centralise parts of its editorial and commercial functions, cut print production and restructure its regional newspaper business. The company consolidated its advertising teams over the last 12 months and recently announced plans to launch its own newswire service after it decided to pull out as a shareholder of Australian Associated Press.

News Corp's local executive team led by executive chairman Michael Miller have taken significant pay cuts, staff are working reduced hours and the company temporarily suspended the print editions of more than 60 suburban titles including The Manly Daily . The company revealed local advertising revenue had fallen by almost 40 per cent at third-quarter results.

News Corporation's global executive chairman, Rupert Murdoch, is not receiving his annual cash bonus this financial year and chief executive Robert Thomson said he would forgo 75 per cent of his annual cash bonus after the company warned investors of significant third-quarter revenue declines.

Foxtel, which News Corp holds a majority stake in, has separately axed more than 250 jobs in the last few months as part of a broader restructure and the weak ad market conditions.

The company announced a management restructure two weeks ago which saw executives such as Lou Barrett and Julian Delany expand their responsibilities. The company was also in due diligence with regional media proprietor Antony Catalano about the sale of its regional and community news­paper business, which is made up of more than 100 titles including The Geelong Advertiser, Gold Coast Bulletin, The Weekly Times and NT News.

Talks with Mr Catalano fell apart and News Corp executive chairman Michael Miller said the company would proceed with a restructure of its regional division.