News Corp shuts down more than 100 print titles, hundreds of jobs to go
by Zoe SamiosNews Corp Australia has confirmed it will axe hundreds of jobs and stop the print editions of more than 100 suburban and regional mastheads as part of a major restructure aimed at cutting costs and consolidating its editorial and commercial operations.
The Sydney Morning Herald and The Age revealed in April that the company was undertaking a major review of its business model and regional publishing business. The cuts follow a string of newsroom closures triggered by the coronavirus pandemic and a faltering advertising market.
Some titles including the Manly Daily, Parramatta Advertiser and St George Shire Standard in suburban Sydney will cease publishing in print and move to digital only editions, while others such as the Progress Leader in Melbourne and Rouse Hill Times in NSW will cease altogether.
In a note to staff on Thursday News Corp executive chairman Michael Miller told staff that the business would move to a digital-focused model which would result in job losses.
"Over recent months we have undertaken a comprehensive review of our regional and community newspapers. This review considered the ongoing consumer shift to reading and subscribing news online, and the acceleration of businesses using digital advertising," Mr Miller said.
"Our portfolio review highlighted that many of our print mastheads were challenged, and the doubler impact of COVID-19 and the tech platforms not remunerating the local publisher whose content they profit from, has, unfortunately, made them unsustainable publications."
On Wednesday night the Herald and Age reported that between 500 and 1000 jobs could be lost as part of the changes at the publisher, which owns The Australian, The Daily Telegraph and The Herald Sun.
From June 29 most regional and community titles will move to digital publishing and 375 journalists will cover regional and community news. There were previously about 1200 roles in the regional and community business.
Major mastheads The Courier-Mail, The Daily Telegraph, The Herald Sun and The Advertiser will become more state focused with increased regional content.
"These initiatives are significant and necessary. They will involve fundamental changes to how we operate as a business," Mr Miller said.
Hobart Mercury, NT News, Cairns Post, Townsville Bulletin, Gold Coast Bulletin, Toowoomba Chronicle and Geelong Advertiser will remain in print and digital. Queensland regional mastheads including the Mackay Daily Mercury, Bundaberg News Mail and Sunshine Coast Daily and New South Wales regional titles like The Coffs Coast Advocate and the Lismore Northern Star will become digital only.
Most NewsLocal titles in NSW, the Leader titles in Melbourne and the Quest and Messenger titles in Queensland and South Australia will also cease print publication. But the Wentworth Courier, Mosman Daily and North Shore Times in affluent parts of Sydney will resume in print.
The media sector has been battling sharp declines in advertising spending that predate the coronavirus pandemic. News Corp's local executive team led by Mr Miller have in recent weeks taken significant pay cuts, while staff are working reduced hours and the company temporarily suspended the print editions of more than 60 suburban titles.
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 was also in due diligence with regional media proprietor Antony Catalano about the sale of its regional and community newsÂpaper 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 Mr Miller said the company would proceed with a restructure of its regional division.
More to come