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Daily Mail to slash 400 jobs across group as print advertising revenues decline

The Daily Mail is set to slash 400 roles across the group, with many of the jobs to come out of the Daily Mail & General Trust’s media operations thanks to declining print advertising revenues.

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The group’s media division, which publishes the Daily Mail Australia locally and also the British newspapers Daily Mail and free-sheet Metro, saw  a 12% decline in print advertising which was partly offset by 17% growth in digital advertising.

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It also revealed it expects to make £50m ($AUS85m) in cost cuts this year with the company announcing a strategic review of its businesses “to create greater focus within the portfolio”.

Revenues across the group were up 4% for the 11 months to August 2016, however, DMG Media revenue was down 5%.

Paul Zwillenberg, DMGT CEO, told investors: “For DMG Media, underlying revenues were 2% lower in the period. This is particularly impressive in the context of very challenging market conditions for print advertising and reflects continued strong digital growth.

“It is clear that there are some sectors and businesses that continue to face very difficult market conditions, particularly in print advertising, property information and energy information.

“We have therefore implemented some reorganisation initiatives, including headcount reductions and office space consolidation, to help protect profitability across the Group.

“These initiatives will create a greater strategic focus and enable quicker and more effective decision-making, with the aim of generating further opportunities for long-term growth.

“And I would like to make clear at this early stage that the reductions in costs will not be at the expense of product investment and quality, as this remains at the cornerstone of DMGT’s future growth.”

The results did not provide any country-by-country breakdown, however, it is understood the job cuts isn’t going to impact the Daily Mail’s Australian operations.

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