Daily Mail publisher to cut up to 100 jobs as Covid-19 hits revenue
The publisher of the Mail newspapers is said to be cutting as many as 100 jobs as the coronavirus crisis continues to take its toll on the publishing industry.
Daily Mail and General Trust (DMGT), which also owns Mail Online, Metro and the i newspaper, has started consultations with staff across its publishing arm DMG Media.
The cuts will impact both commercial and editorial staff, though the majority of job losses are expected to come from the commercial side.
As part of the cutbacks DMGT is set to shut down the Mail on Sunday’s Event magazine, while redundancies are also expected at You magazine, the Guardian reported.
A DMGT spokesperson confirmed the company was consulting with employees but declined to comment further.
The move comes after the FTSE-listed firm reported a 44 per cent drop in operating profit for the nine months to June. Revenue also fell 23 per cent in its latest quarter as the coronavirus lockdown hammered circulation.
Earlier this year DMGT opted not to place any staff on furlough, instead introducing staggered pay cuts for all stay earning over £40,000.
However, staff have each month been handed shares equal in value to their pay sacrifice. At the end of the year, staff will have the choice of selling these shares or keeping them as an investment. If the share price falls below the grant price, DMGT will compensate the difference.
Despite increased demand for news during the coronavirus crisis, publishers have suffered an unprecedented hit to revenue due to a collapse in the UK ad market and lower footfall during lockdown.
The Evening Standard last week announced plans to cut roughly a third of its workforce in a bid to cut costs after suffering a huge fall in circulation.
Times and Sun publisher News UK, the Guardian and local newspaper group Reach are among other companies to announce job cuts.