Guardian Newspapers To Cut 35 Jobs

Guardian Newspapers (GNL), publisher of the Guardian, the Observer and the Guardian Unlimited websites, is cutting 35 jobs across the group as a result of the deterioration in the advertising market.

The newspaper publisher plans to cut commercial and editorial posts across the group, including five journalists from the Observer, six staff from the Guardian Unlimited websites and 24 jobs from its various commercial departments.

The cuts, which will be made in April, are part of a cost cutting scheme implemented across the newspaper group after the events of 11 September caused the already unstable economic climate to worsen. A voluntary redundancy and early retirement scheme is already in place at the Guardian, which is expected to reduce its editorial staff by 30 over the next three years.

Managing director of Guardian Newspapers, Carolyn McCall, said: “The severe advertising downturn has seriously affected the company’s revenue. We anticipate that GNL will be £30 million down in advertising against its plan for the current financial year.”

A number of newspaper publishers have been forced to tighten their belts as a result of the advertising downturn. Hollinger Telegraph announced 17 cost cutting redundancies last October (see Telegraph Online Cuts Jobs). News International, which owns The Sun, the News of the World and The Times, admitted that profits would be below expectations due to the events of 11 September (see Murdoch’s News Corp Loses £69m) and Pearson raised the cover price of the FT after announcing that profits at the FT Group for 2001 would be down 40% on 2000 (see Pearson Increases FT Cover Price).

National newspapers as a whole saw circulation decline during 2001. However, analysis of last year’s ABC figures shows that the total circulation of the broadsheet market increased year on year for most months of 2001 (see Feature: Broads Doing Best In National News Circulation).

Guardian Media Group: 020 7278 2332 www.gmgplc.co.uk

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