News to shrink divisions in cost-cutting sweep

Rupert Murdoch’s News Ltd will slash its operations along Australia’s east coast in a move that is expected to lead to major job cuts.

News Ltd chief executive Kim Williams today began outlining to staff the extent of a major shake-up at Australia’s biggest newspaper publisher.

While he is yet to confirm how many jobs will go, Mr Williams reaffirmed the company’s commitment to its newspapers, which include The Daily Telegraph, the Herald Sun and The Australian.

“We believe in print and are committed to print,” The Australian website reported Mr Williams as telling senior News Ltd executives.

“We are obviously not going to be pollyannas about that.

“But we still sell around 11 million newspapers a week. Advertisers still find huge value in print.”

Mr Williams is due to address News Ltd staff across Australia in a video message at 1.45pm (AEST).

As part of the restructure, News Ltd will shrink its eastern seaboard operations from 19 to five.

The Australian reported that Mr Williams declined to put a number on redundancies, but hoped most of the job losses could be achieved by way of natural attrition.

The five remaining News divisions will be News NSW, News Qld, News Victoria, The Australian and NewsLifeMedia, the company formerly known as News Magazines, The Australian reported.

News’ digital operations, News Digital Media, will be incorporated into the new divisions.

The new divisions replace The Herald and Weekly Times in Melbourne, Queensland Newspapers and Nationwide News in Sydney.

The move is designed to centralise News’ editorial, sales, marketing, finance and administrative operations, the company says.

Read more: http://www.smh.com.au/business/news-to-shrink-divisions-in-costcutting-sweep-20120620-20nfe.html#ixzz1yIkAPqbB

• ‘Citizen journalists’ can’t replace papers. Fairfax slashes jobs, goes tabloid paywall. Gina looms

• The full 13 minutes from News boss Kim Williams:
http://video.news.com.au/2247894187/News-ltd-ceo-address-in-full

• David McKnight, The Conversation: Why does Gina Rinehart want control of Fairfax?

• Meanwhile, in the UK: Police investigate ‘secret’ mobile phone of James Murdoch