Reach, the publisher of the Daily Mirror, Daily Express and Daily Star newspapers, has decided to temporarily dismiss 20 per cent of its 4700 strong staff, that is, more than 900 employees. It will also be deducting the salaries of its top management, including the senior editorial team.
The team headed by Lloyd Embley, group editor-in-chief, will take a 20 per cent pay cut, while the rest of the employees face 10 per cent deduction in their pay.
The Company has not only cancelled bonuses this year, but also scrapped the dividend and decided against publishing the financial guidance.
In addition, the board is planning to meet to discuss ways to defer payments due to the pension fund. A spokesman for the Company revealed that Reach shells out close to £4.1m every month in payments related to the pension fund.
It is reported that the board is of the opinion that all stakeholder groups should be contributing so that the Company’s position remains as strong and stable as possible in these difficult times.
The Company will continue its print and digital titles without any interruption.
Earlier known as the Trinity Mirror, Reach owns hundreds of regional titles including the Manchester Evening News, as well as the Scottish Daily Record and the celebrity magazine OK!
Reach is not the only one to resort to pay cuts and other cost cutting measures. Earlier this week, publishers, such as the London financial freesheet City AM and JPI Media, the owner of The Scotsman and the Yorkshire Post, have suspended printing some titles.