StockMarketWire.com - Daily Mirror and Daily Express newspaper publisher Reach said it would axe 550 jobs, or 12% of its workforce, as the Covid-19 crisis speeds up a structural shift in the media sector towards online channels.

The company announced the restructure while reporting a 28% slump in second-quarter revenue.

Slightly improved trends in June saw revenue fall by 24%.

"Structural change in the media sector has accelerated during the pandemic and this has resulted in increased adoption of our digital products,' chief executive Jim Mullen said.

'However, due to reduced advertising demand, we have not seen commensurate increases in digital revenue.'

'To meet these challenges and to accelerate our customer value strategy, we have completed plans to transform the business and are ready to begin the process of implementation.'

'Regrettably, these plans involve a reduction in our workforce and we will ensure all impacted colleagues are treated with fairness and respect throughout the forthcoming consultation process.'

The restructure was expected to deliver £35m in annualised savings at an estimated one-off cost of £20m.




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