Daily Mail owner to cut more than 400 jobs amid print advertising decline
Summary: The owner of the Daily Mail has announced it will cut more than 400 jobs after a double-digit decline in print advertising last year. A strategic review of the businesses owned by Daily Mail & General Trust (DMGT) has been launched in response to "challenging market conditions," said the company in a statement. Just less than half" of the job cuts will come from DMG Media, but editorial job cuts are "not a significant part of the mix," said DMGT chief financial officer Stephen Daintith. Mr Daintith said the recent DMG media ad revenue decline came as it faced tough comparisons from a year earlier. He added there had been no signs of a direct impact of the Brexit vote on the business.
[] This reorganisation will result in an exceptional operating cost of £50 million – more than three times the amount suggested earlier this year.
[] DMGT employs around 10,000 staff worldwide
[] 2,700 employed by DMG media, home of the Daily Mail, Mail on Sunday, Mail Online, Metro and US-based site Elite Daily.
[] In May, DMGT said print advertising revenues had declined 13 per cent in the six months to the end of March 2016, and to 15 per cent in the first quarter of this year.
[] From the update on Thursday. the group have said they have seen a growth of 4% in revenue - 2% underlying revenue decline of 2% by a "weak UK print advertising market"
[] Online advertising driven by MailOnline has been helping offset the impact, with ad sales up 18 per cent in the first 11 months of its financial year.
[] Newspaper circulation revenues rose 1 per cent in July and August
[] Daily Mail have raised there price from 5p to 65p [ this happened in first time in 3 years in February.
My opinion: Due to the numbers seen from above obviously shows that the newspaper industry is having a really tough time to make revenue and generate as a newspaper. By Daily mail needing to increase their price of their newspaper means that not many people are getting the newspaper and even if people are, they aren't enough for them to continue on. As new and digital media is repeatedly gaining the notice of people and even older generations I feel like majority of the people are leaving the traditional ways of news behind, many people now get their news online because of the convergence that is available to them. They have an easier option to view news online to where they mostly are anyway. Slowly but surely, I think print will be officially dead.
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