News Corp. will slash approximately 1,250 jobs, CEO Robert Thomson announced on Thursday during an earnings call, the first since the merger between News Corp. and Fox News was called off by Rupert Murdoch.
The company owns the Wall Street Journal, Dow Jones, and Australia’s Foxtel.
“Obviously, a surge in interest rates and persistent inflation had an impact on all of our businesses, but in particular, digital real estate and book publishing, which remains a majority physical business and continues to be subject to logistical exigency,” Thomson said on the company’s earnings call, citing a tough ad environment and missed second-quarter earning estimates in News Corp’s news and digital real estate businesses.
“The reforms now underway at our businesses should create a solid platform for future profitability. Crucially, we will be reducing headcount across the company by 5%. That is a necessary response given these macro conditions,” he said.
Added Thomson, “We are absolutely focused on reducing costs across our businesses and making price adjustments where prudent.” He added that the initiatives are “now underway.”
In a separate statement shared with Reuters, Thomason said that “a surge in interest rates and acute inflation had a tangible impact on all of our businesses.”
The layoffs come on the same day that Yahoo announced it was slashing 20% of its workforce.
The Hollywood Reporter first broke the news.