INDEPENDENT NEWS & Media (IN&M) is to axe 90 jobs at its London-based newspapers, the Independent and the Independent on Sunday, as part of a group-wide review of payroll costs, writes Laura Slattery.
The redundancies, which are the result of a sharp decline in print advertising, will be mostly in the two newspapers' editorial departments, the company said in a statement yesterday.
The redundancies, a "sizeable number" of which will be voluntary, are expected to save the group more than £10 million.
The severity of the drop in property, jobs-related and classified advertising means more job cuts are expected in both the British and Irish operations of IN&M over coming months. But it is the UK division that is likely to suffer the heaviest cuts. Media analysts suggest that up to 200 redundancies from the London papers - a cut of up to 40 per cent of its workforce - are possible if the group decides to outsource certain operations.
IN&M is in discussions with a number of other publishers of UK national newspaper titles about sharing services such as facilities, IT, human resources and sub-editing functions, which could lead to a further reduction in headcount. It is understood these discussions are taking place with Trinity Mirror, Telegraph Media and Daily Mail General Trust.
In a statement yesterday IN&M said that, in common with newspapers around the world, the Independent and its Sunday sister title had been hit by the downturn in advertising revenue. "As well as much greater integration between the two papers, a more efficient use of technology will enable the papers to streamline their production processes, thereby saving staff numbers," it said.
Simon Kelner, managing director of the UK division and a former editor-in-chief of the titles, said the changes would be "instrumental in helping to secure the future of these great newspapers".
Ivan Fallon, chief executive of IN&M in the UK, said the group was determined that readers would see no loss of value or quality. The redundancies will take effect by early 2009.
Businessman Denis O'Brien, who has been branded a "dissident shareholder", believes that IN&M should sell the loss-making London papers, which he says are vanity titles. The Belfast Telegraph has underpinned the Independent's losses for many years and made the UK national division profitable, but it, too, is now suffering from a steep decline in classified advertising revenue.
IN&M's announcement is the latest in a series of cutbacks in the print media. The Financial Times, owned by Pearson, is cutting 60 jobs, mainly in its library division. Trinity Mirror is closing several editorial offices and cutting staff and Guardian Media Group is shutting six newspaper offices.
Eight people are to be made redundant at the Irish office of Associated Newspapers, which publishes the Irish Daily Mail, while it has also been reported that Associated Newspapers will cut 300 jobs in London.
