Business

Irish Independent publisher seeks to cut 55 jobs in redundancy programme

Redundancies to be split 50/50 across editorial and non-editorial roles in second job-cutting initiative announced by Mediahuis Ireland in a year

Belgian-based Mediahuis owns the Irish Independent, Sunday Independent, Sunday World, Belfast Telegraph and regional papers including the Kerryman and Wexford People

Ellen O’Regan
Tue Jan 23 2024 - 13:10

Mediahuis Ireland has announced that it is seeking to cut about 55 jobs from its Irish operation, or about 10 per cent of its total workforce, as part of a new voluntary redundancy programme.

Belgian-based Mediahuis owns the Irish Independent, Sunday Independent, Sunday World, Belfast Telegraph and regional papers including the Kerryman and Wexford People.

The company employs close to 550 people in Ireland, made up of 338 people working in editorial roles and about 211 in areas such as technology, HR and finance.

It is understood that redundancies will be split 50/50 across editorial and non-editorial roles, with no focus on any particular titles.

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As reported by the Irish Independent today, the company has warned of potential compulsory job losses if a target to cut costs by €4 million is not met.

Terms of the voluntary redundancy programme include two weeks’ pay per year of service plus statutory redundancy.

This is the second time the media company has sought voluntary redundancies in its Irish operation within the past year, with a previous programme opening in March 2023.

In a statement on Tuesday, Mediahuis Ireland said the latest programme comes as the company tries to manage its traditional cost base and adapt to new digital revenue streams.

The company has said that its two traditional revenue streams of single copy sales and print advertising, while still its “most important”, are under pressure and are being replaced by revenues from digital subscribers and digital advertising “at a slower pace”.

[ Mediahuis Ireland records €13.4m net profit for 2022 ]

The Mediahuis Group estimates that 70 per cent of its revenue this year will come from print, and 30 per cent from digital, but that this ratio will be reversed by 2030.

Mediahuis Ireland says it is continuing to invest in digital, seeing growth in podcasting and local news in particular, but that it needs to manage its “traditional cost base”.

It added that savings from the new voluntary redundancy programme would allow the business to invest in new products, target new audiences and make its brands “more resilient and more customer-oriented” for readers and advertisers.

[ Daily printed newspapers will disappear within next decade, says Mediahuis Ireland boss ]

Mediahuis Ireland chief executive Peter Vandermeersch said media companies all over the world are “struggling with the same dilemma” of how to generate sufficient revenues to finance “excellent journalism”.

“I am convinced that our strategy is the right one: to restructure our business to make this a leaner, more streamlined news organisation with the most efficient processes and systems possible, while continuing to produce the highest-quality journalism and diversifying our revenues to build a sustainable future for our company,” he said.

Séamus Dooley, Irish secretary of the National Union of Journalists (NUJ), expressed “grave concern” at the announcement, noting that there was no prior consultation with the NUJ on the proposed redundancies.

“The loss of up to 55 editorial posts would have serious implications in an organisation where editorial staff has already been reduced. We note the commitment to voluntary redundancies but are also concerned that compulsory redundancies have not been ruled out at this stage,” he said, calling for “urgent clarification on where the axe is likely to fall”.

The NUJ has sought engagement with Mediahuis Ireland, and said it would be consulting with its officers and members within the company in the coming days.

Ellen O'Regan

Ellen O’Regan

Ellen O’Regan is an Irish Times journalist.

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