Owner of the Daily Express, Daily Star and Daily Mirror will cut 12% of its total workforce after the group saw revenues plunge by 27.5% over the second quarter.
Reach, formerly names Trinity Mirror, has said it will axe 550 jobs after a fall in newspaper sales and advertising revenue during the Coronavirus pandemic.
Jim Mullen, the chief executive of Reach, said: “Structural change in the media sector has accelerated during the pandemic, however, due to reduced advertising demand, we have not seen commensurate increases in digital revenue.”
“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 newspaper and magazine owner plans to increase its digital readership from 2.5 million to 10 million by the end of 2022 in an attempt to focus on digital demand. Whilst newspaper circulation has increased since the lockdown, levels remain lower than pre-Covid.
Reach has said that the job cuts and other cost-saving plans will save the group £35mn annually.