The largest and most famous media empire in the United States, owned by well-known businessman and billionaire Rupert Murdoch, has decided to start mass layoffs due to falling financial income and the collapse of its business, including falling sales of the most widespread newspaper in Britain.
And the well-known American News Corp announced that it will lay off 5% of its employees this year, which means that it will cut more than 1,250 jobs before the end of this year due to declining profits and financial problems. what the company is suffering from.
The News Corp, owned by prominent billionaire Rupert Murdoch, owns some of the largest and best-known newspapers and news websites in the UK, Australia and the US, including The Sun, the UK’s most widely circulated newspaper, and The Times, which is published in London. In the United States, she owns the Wall Street Journal and the New York Post, as well as the giant book publishing company Harper Collins.
According to information obtained by Al Arabiya Net from various sources, including a report published by the British Daily Telegraph newspaper, the decision to cut the company’s staff by 5% is due to the crisis that News Corp has experienced. rates in addition to higher operating costs.
The company did not specify exactly where these jobs could be cut, as the abolished jobs could be spread across a number of newspapers and subsidiaries rather than being concentrated in one place.
The cuts come after the US-based company reported a 7% drop in revenue to $2.5 billion in the three months to December, driven by a downturn in its book publishing division.
Net income fell 64% to $262 million, with the company’s news division hit by higher costs and lower revenues.
The downturn in the housing market in both the US and Australia also hurt businesses, with profits across News Corp’s entire real estate portfolio falling 28%.
“Clearly, rising interest rates and sharp inflation have had a significant impact on our entire business,” said Robert Thompson, chief executive of News Corp.
He added: “But we believe that these problems are more ephemeral than eternal. Just as our company successfully passed the stress test of the coronavirus pandemic with record profits, initiatives are now being implemented, including an expected reduction in the number of employees by 5% or about 1,250 vacancies. this year will create a solid foundation for future growth.”
