Reach plc, the commercial national and regional news publisher which publishes the Nottingham Post, Derby Telegraph and Leicester Mercury, has revealed plans to transform the business and cut jobs.
The changes are anticipated deliver £35 million in annualised savings at an estimated one-off cost of £20 million.
The plans will reshape the Reach business, with Editorial moving to a more centralised structure, bringing together national and regional teams across print and digital “to significantly increase efficiency and remove duplication.” Reach will also move to fewer locations and a simpler management structure.
The company is planning to cut 550 jobs – 12% of its workforce.
A 45-day consultation is due to begin.
Jim Mullen, Chief Executive Officer, Reach plc, said: “Structural change in the media sector has accelerated during the pandemic and this has resulted in increased adoption of our digital products. 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 plans will provide a stable platform for us to accelerate our strategy, based on stronger and deeper customer relationships, increasing our appeal to advertisers. This will ensure the sustainability and profitability of the Reach business, enabling it to deliver to stakeholders over the long-term.”