News Corp To Slash $20 Million In Costs Over Next Two Years

Manhattan, New York USA - July 9, 2011: People by the News Corporation Headquarters. News Corp is a large media conglomerate. Rupert Murdoch The company's founder, Chairman & Chief Executive Officer.

News Corporation is reportedly set to cut costs from the business that owns The Australian, The Daily Telegraph, and The Herald Sun over the next two years.

Known internally as “Audience 25,” the cost-cutting measures are designed to make the company’s newsrooms financially viable and counter the effects of rising inflation and global economic headwinds.

Senior execs are reportedly in the process of identifying where to save money.

Apparently the project is being led by John McGourty, national community masthead network editor and Rowan Hunnam, head of digital, national regional, and community network.

Details of the cost-cutting measure are unclear as it stands. However, sources have suggested to the Sydney Morning Herald that it could lead to more company-wide editorial teams or in centralising production resources.

The business already operates company-wide sport and business networks.

News Corp seems to be ringing the changes at the moment, with a variety of initiatives to help boost business. Last week it was revealed that the company was preparing to redesign its tabloids to save money on paper, as well as hiking prices.

A proposed re-merger of Rupert Murdoch’s News Corp and Fox Corp was also put on ice recently. Murdoch and his son Lachlan had been considering re-uniting the two ends of the empire in order to save costs. However, it was deemed “not optimal” for shareholders.

However, News Corp also owns cable TV operator Foxtel and streaming services Kayo and Binge. It is unclear whether these will be affected by the same cost-cutting measures.

Of course, one way to save money would be to cut down on the number of very boozy lunches.




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