Media group Dow Jones & Co – publisher of the Wall Street Journal – is preparing to axe more jobs and tighten its belt in the second round of cost-cutting at the company this year, chairman/chief executive Peter R Kann told staff in an email.
The company made cuts of $120 million at the end of Q1, laying off 202 employees. Although the size of the next round of job cuts is as yet unknown, Dow Jones insisted that it “would not be of the same magnitude” as before.
In addition, revealed the email, chief financial officer Richard Zannino is heading an operation “that has already identified more than $3 million in non-personnel cost reductions, and has a goal of $7 million more.”
However, continued Kann, “both profits and profit margins are likely to decline significantly this year, even with all of the expense reductions.”
As with many media groups at present, the problem is a decline in ad revenues. “The downturn in advertising and some other revenues has been broader and more pronounced than we had expected and has lasted longer than we hoped it would,” explained the email.
News source: Adweek.com