LONDON - Reach plc, the publisher behind well-known titles such as Mirror and Express newspapers, is set to cut 450 jobs in a significant downsizing effort, with 320 of these roles affecting journalists. This move comes as the company grapples with a challenging digital transition and faces a £21 million shortfall in digital revenue compared to the previous year. The National Union of Journalists (NUJ) has expressed a high degree of anger toward the company's management and is considering various responses, including potential strikes.
The decision to implement such drastic job cuts during the holiday season has led to heightened mental health concerns among staff members. The NUJ has criticized Reach plc's leadership for prioritizing discussions of shareholder dividends at an upcoming Wednesday meeting while providing little reassurance to its employees. This lack of confidence in CEO Jim Mullen (NASDAQ:MULN) and his senior team has prompted the union to contemplate industrial action.
The NUJ has been particularly vocal about the perceived failure of Reach's digital strategy, which they attribute to the significant drop in income and the resulting job losses. This latest round of redundancies marks the third wave in 2023 and represents the largest mass layoff at the company in years. The union also pointed out that since 2010, Reach has eliminated over 2,000 jobs, including a notable reduction of 330 journalist positions earlier this year.
As part of its cost-cutting measures, Reach plans to close smaller websites and transform its Bristol office into an "editorial meeting space." These decisions are being made amidst an ongoing collective consultation process with unions. The NUJ has urged non-executive board members to take their strong objections into account during the shareholder meeting, as they express no confidence in the current direction and control of the business under Mullen's leadership.
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