Daily Mail owner to cut more than 400 jobs amid print advertising decline

Daily Mail & General Trust says 'just less than half' the job cuts will come from DMG Media, home of the Daily Mail, Mail on Sunday and Metro

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The Independent Online

The owner of the Daily Mail has announced it will cut more than 400 jobs after a double-digit decline in print advertising last year.

A strategic review of the businesses owned by Daily Mail & General Trust (DMGT) has been launched in response to "challenging market conditions," said the company in a statement.

This reorganisation will result in an exceptional operating cost of £50 million – more than three times the amount suggested earlier this year.

DMGT employs around 10,000 staff worldwide, with 2,700 employed by DMG media, home of the Daily Mail, Mail on SundayMail OnlineMetro and US-based site Elite Daily.

"Just less than half" of the job cuts will come from DMG Media, but editorial job cuts are "not a significant part of the mix," said DMGT chief financial officer Stephen Daintith, according to the Guardian.

In May, DMGT said print advertising revenues had declined 13 per cent in the six months to the end of March 2016, and to 15 per cent in the first quarter of this year.

In an earnings update made on Thursday, the group said it had seen a growth of 4 per cent in revenue, with a 2 per cent underlying revenue decline of 2 per cent by a "weak UK print advertising market".

Online advertising driven by MailOnline has been helping offset the impact, with ad sales up 18 per cent in the first 11 months of its financial year.

Newspaper circulation revenues rose 1 per cent in July and August, helped by recent cover price hikes for its national titles.

The group increased the price of the Daily Mail for the first time in three years in February, by 5p to 65p, while it lifted the price of the Mail on Sunday in July.

Mr Daintith said the recent DMG media ad revenue decline came as it faced tough comparisons from a year earlier.

He added there had been no signs of a direct impact of the Brexit vote on the business.

 

This overhaul will take place under new chief executive Paul Zwillenberg, who took over from Martin Morgan on 1 June.

Mr Zwillenberg is set to give more details on the overhaul and cost-cutting plans alongside full-year results on 1 December.

Additional reporting from Press Association

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