Independent News & Media has announced a €53.5 million worldwide restructuring plan intended to reduce debts over the next twelve months.
The publishing group, which owns
The Independent in the UK and has businesses in Ireland, Australia, New Zealand and South Africa, aims to generate €18.4 million in savings by the end of 2005.
It is anticipated that almost 600 jobs could be lost with most of the cuts occurring in the back office and clerical departments. The move is the latest in a series of cost saving initiatives which have already raised €365 million. Last week INM sold its London regional newspaper division to Archant in a deal worth €62 million (see INM’s London Titles Go To Archant For £62m).
Sir Anthony O’Reilly, executive chairman, commented: “Following an extended period of acquisitions and development of your Group, and in the context of an improving – yet still volatile – advertising climate, we believe this to be the appropriate time to take this important and far-reaching restructuring opportunity enabling us to be the low-cost operator in all of our markets.”
The company said that advertising activity has picked up and circulation revenues remain “firm” going into 2004.
