News Corp's planned acquisition of APN News & Media's Australian Regional Media (ARM) business will result in up to 300 job cuts aimed at back office, printing and distribution divisions, according to a report in News Corp's The Australian.
Rupert Murdoch’s News Corp agreed in June to pay APN $36.6 million for ARM, which includes 12 daily newspapers – such as Gladstone’s The Observer, Bundaberg’s NewsMail, The Gympie Times and Lismore’s The Northern Star - 60 community publications across northern New South Wales and Queensland, as well as 30 regional news websites.
The report says it's understood the 300 job cuts will be aimed at back office, printing and distribution functions, with News Corp seeking to retain as many journalists as possible.
The cuts are expected to be implemented over an initial phase, provided the deal is approved by shareholders and the competition watchdog, and a subsequent round of cost cuts once News Corp has had more time to assess the ARM operations across regional Queensland and northern NSW.
The report says there are no immediate plans to close any of the ARM newspapers.
There are no plans to shut ARM titles, which include The Gympie Times, The Chronicle in Toowoomba and the Ballina Shire Advocate, provided they remain profitable.
APN shareholders will vote on the proposed $36.6m sale on Friday. News Corp already holds a 14.9% stake in ARM - which recorded a 42 per cent drop in earnings before tax to $3.4m for the six months ended June 30, with revenue down six per cent to $89m.
"News Corp should benefit from picking up extra printing plants," says The Australian. "It distributes The Australian and The Courier-Mail throughout Queensland from presses in Brisbane and Townsville. The acquisition included presses in Yandina, Warwick and Rockhampton, which will cut the distribution costs, although APN closed a printing plant in Toowoomba last year."