News Corp to axe 1200 jobs

Rupert Murdoch’s News Corporation says it will cut 1250 jobs globally after a sharp drop in second-quarter earnings.

Feb 10, 2023, updated Feb 10, 2023
News Corp's New York headquarters. Photo: AP/Richard Drew

News Corp's New York headquarters. Photo: AP/Richard Drew

The media conglomerate reported on Friday a 64 per cent decline in income in the quarter ending December 31, down to $US94 million ($A135 million) from $US262 million ($A376 million) the year prior.

In response, News Corp announced a five per cent reduction in staff, or 1250 jobs, in coming months.

The company, which locally owns The Advertiser, The Australian, The Herald Sun, The Daily Telegraph, the NT News and Hobart Mercury, says the job cuts will save $US130 million ($A186 million) per year.

Revenue dropped seven per cent to $US2.5 billion ($A3.6 billion) while profitability fell 30 per cent to $US409 million ($A586 million).

CEO Robert Thomson blamed a surge in interest rates and inflation for the slump in earnings, with book publishing, news media and digital real estate the worst-hit segments.

News Corp will pay shareholders an interim dividend of 10c after earnings per share collapsed to 12c from 40c the year prior.

-with AAP

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