In a significant restructuring effort, Reach plc, the publisher of the Daily Record and a prominent player in Scottish whisky distiller news, is set to cut 450 jobs, over 10% of its total workforce. The majority of these job cuts, numbering around 320, will come from the editorial department. This move comes as the company grapples with economic pressures and a rapidly shifting industry landscape.
The restructuring is a response to declining digital advertising revenues, attributed to algorithm changes and evolving customer behaviors. CEO Jim Mullen (NASDAQ:MULN) has linked these redundancies to industry challenges and the company's need for rapid digital adaptation. This includes their successful US expansion and an increased focus on online product development.
Despite the job cuts, Reach plc remains committed to maintaining the sustainability of their print products while also aiming to enhance their digital growth. Mullen has emphasized that compulsory redundancies will be kept to a minimum and fairness will be prioritized throughout this transition period. He has also underscored Reach's ongoing dedication to quality journalism and asked for understanding from employees as they adapt to these changes.
The announcement was met with concern by the National Union of Journalists (NUJ). They highlighted potential impacts on quality journalism, including significant news coverage areas like North Sea oil and gas plans and BBC's Top Tory commentary. The NUJ urged Reach plc to maintain a flexible and transparent consultation process while navigating these economic challenges. They also stressed the importance of job security and minimizing compulsory redundancies during this transition period.
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