Daily Mail group doubles job cuts at regional arm

Publisher set to hit targets for full year despite decline in advertising

The publisher of the Daily Mail has axed 1,000 staff from its regional newspaper business – twice the number of cuts it announced just four months ago – as the division continues to suffer from plunging advertising revenues.

Daily Mail & General Trust updated the market ahead of its first-half results yesterday. It revealed that cost-cutting at Northcliffe Media would see 1,000 workers lose their jobs. In November, it said the figure would be closer to 500.

"As a result of the tough revenue picture, further substantial cost reductions are being made. We now expect a net total of about 1,000 people to leave Northcliffe this year," the company said yesterday. A spokesman for the group added that many of those affected had already left, or were involved in the consultation process. Northcliffe, which publishes 113 regional titles in Britain, will be left with 3,500 employees after the cuts.

Regional newspapers are in dire straits as advertising revenues have plummeted since the onset of the credit crunch. Northcliffe, as well as Trinity Mirror and Johnston Press, have approached the Government for help, including a call for merger rules to be relaxed. Yesterday, DMGT's spokesman said negotiations were ongoing.

DMGT also announced further cost cutting at Associated, the division that publishes the national Mail titles.

While the group said the UK and European consumer media businesses had suffered a "difficult" quarter, it was relatively upbeat, adding that "some degree of stabilisation seems to be occurring at the moment and into April".

Advertising revenues across the industry have dropped off a cliff. Last week, the Advertising Association revealed that ad spending had fallen 10 per cent in the last quarter of 2008 alone.

The situation is worsening. In the three months to March, DMGT predicted its ad revenues would plunge by 24 per cent. Advertising in the Northcliffe titles is expected to fare even worse, with an expected fall of 37 per cent.

Classified advertising is crucial for the regional titles and has dived. The company said yesterday, however, there are some signs of stabilising in the market. The exception was in recruitment, where revenues are expected to halve this quarter.

Despite the doom and gloom surrounding the advertising market, DMGT expects to exceed its forecast for revenues and cost savings of £100m this year. Its management added that the full-year results would be in line with the market's expectations "subject to us having little visibility on Associated Newspapers' advertising revenues". The news pleased investors with the shares finishing 3.4 per cent higher at 241.75p.

The group's business-to-business division remained resilient, despite trading becoming harder. "Any reduction in revenue forecasts is being largely offset by cost reductions," it said.

Despite "a substantial fall from last year's first half year" because of the market conditions, the group is expecting performance in the second half to be stronger, bolstered by the sale of the Evening Standard at the end of February and its cost cutting programme.

Have you tried new the Independent Digital Edition apps?
ebookA unique anthology of reporting and analysis of a crucial period of history
A 1930 image of the Karl Albrecht Spiritousen and Lebensmittel shop, Essen. The shop was opened by Karl and Theo Albrecht’s mother; the brothers later founded Aldi
Lane Del Rey performing on the Pyramid Stage at Glastonbury 2014
people... but none of them helped me get a record deal, insists Lana Del Rey
Life and Style
fashion Designs are part of feminist art project by a British student
Arts and Entertainment
Dwayne 'The Rock' Johnson stars in Hercules
filmReview: The Rock is a muscular Davy Crockett in this preposterous film, says Geoffrey Macnab
Arts and Entertainment
British author Howard Jacobson has been long-listed for the Man Booker Prize
Life and Style
Arts and Entertainment
Standing the test of time: Michael J Fox and Christopher Lloyd in 'Back to the Future'
filmA cult movie event aims to immerse audiences of 80,000 in ‘Back to the Future’. But has it lost its magic?
Louis van Gaal watches over Nani
Arts and Entertainment
Flora Spencer-Longhurst as Lavinia, William Houston as Titus Andronicus and Dyfan Dwyfor as Lucius
theatreThe Shakespeare play that proved too much for more than 100 people
exclusivePunk icon Viv Albertine on Sid Vicious, complacent white men, and why free love led to rape
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Media

Web / Digital Analyst - SiteCatalyst or Google Analytics

competitive: Progressive Recruitment: My client who are a leading publisher in...

Data Scientist

competitive: Progressive Recruitment: A data analytics are currently looking t...

Graduate Sales Executive

17.5k + Commission (£18.5k after probation period): ESI Media: You will be res...

PPC Account Managers

£25k - £30k (DOE): Guru Careers: Two expert PPC Account Managers are needed to...

Day In a Page

Noel Fielding's 'Luxury Comedy': A land of the outright bizarre

Noel Fielding's 'Luxury Comedy'

A land of the outright bizarre
What are the worst 'Word Crimes'?

What are the worst 'Word Crimes'?

‘Weird Al’ Yankovic's latest video is an ode to good grammar. But what do The Independent’s experts think he’s missed out?
Can Secret Cinema sell 80,000 'Back to the Future' tickets?

The worst kept secret in cinema

A cult movie event aims to immerse audiences of 80,000 in ‘Back to the Future’. But has it lost its magic?
Facebook: The new hatched, matched and dispatched

The new hatched, matched and dispatched

Family events used to be marked in the personal columns. But now Facebook has usurped the ‘Births, Deaths and Marriages’ announcements
Why do we have blood types?

Are you my type?

All of us have one but probably never wondered why. Yet even now, a century after blood types were discovered, it’s a matter of debate what they’re for
Honesty box hotels: You decide how much you pay

Honesty box hotels

Five hotels in Paris now allow guests to pay only what they think their stay was worth. It seems fraught with financial risk, but the honesty policy has its benefit
Commonwealth Games 2014: Why weight of pressure rests easy on Michael Jamieson’s shoulders

Michael Jamieson: Why weight of pressure rests easy on his shoulders

The Scottish swimmer is ready for ‘the biggest race of my life’ at the Commonwealth Games
Some are reformed drug addicts. Some are single mums. All are on benefits. But now these so-called 'scroungers’ are fighting back

The 'scroungers’ fight back

The welfare claimants battling to alter stereotypes
Amazing video shows Nasa 'flame extinguishment experiment' in action

Fireballs in space

Amazing video shows Nasa's 'flame extinguishment experiment' in action
A Bible for billionaires

A Bible for billionaires

Find out why America's richest men are reading John Brookes
Paranoid parenting is on the rise - and our children are suffering because of it

Paranoid parenting is on the rise

And our children are suffering because of it
For sale: Island where the Magna Carta was sealed

Magna Carta Island goes on sale

Yours for a cool £4m
Phone hacking scandal special report: The slide into crime at the 'News of the World'

The hacker's tale: the slide into crime at the 'News of the World'

Glenn Mulcaire was jailed for six months for intercepting phone messages. James Hanning tells his story in a new book. This is an extract
We flinch, but there are degrees of paedophilia

We flinch, but there are degrees of paedophilia

Child abusers are not all the same, yet the idea of treating them differently in relation to the severity of their crimes has somehow become controversial
The truth about conspiracy theories is that some require considering

The truth about conspiracy theories is that some require considering

For instance, did Isis kill the Israeli teenagers to trigger a war, asks Patrick Cockburn