Independent News & Media will cut about 90 jobs at its London-based newspapers, The Independentand The Independent on Sunday, because of a decline in revenue from print advertising.
The cuts, mostly in the newsroom, will save more than £10 million (€11.8 million), Dublin-based Independent News & Media said in an e-mailed statement today.
The company may also outsource other areas of operation, it said.
As the financial crisis worsens, UK newspapers have cut jobs and closed local publications and printing presses, citing declining revenue from print display and classified advertising.
Pearson's
Financial Timesis cutting 60 jobs mainly in its library division, Trinity Mirror is closing several editorial offices and cutting staff, and Guardian Media Group is shutting six newspaper offices.
"This restructuring will produce a significantly lower cost base, which will allow our titles to weather whatever storms the next few years will bring," Ivan Fallon, chief executive officer at Independent News & Media UK, said in today's e-mail.
Independent News & Media shares fell as much at 7.5 per cent in Dublin trading and were 5.1 per cent lower at 56 cents at 2.01pm. The stock has plunged 76 per cent this year.
The
Independent on Sundaydropped an average 21.4 per cent in circulation in October to 165,764 copies from a year earlier, according to the Audit Bureau of Circulations.
Independent News & Media said the job cuts will be made by early 2009.
The company said last month it had net debt of about €1.4 billion ($1.8 billion) and full-year revenue would probably fall 2 per cent this year, excluding currency fluctuations.
Revenue will decline "marginally" on that basis in 2009 while net profit will fall as much as 17 per cent in 2008, it said.
Businessman Denis O'Brien, who's been branded a "dissident shareholder", increased his holding in Independent News & Media to 26 per cent in late October. O'Brien has said the company should sell the
Independentnewspaper.
Bloomberg