The American media company News Corp has announced that it will cut 5% of its workforce, or 1,250 jobs, following the drop in profits and revenues.
The company said it had committed $6 million to its proposed merger with Fox Corp, which Rupert Murdoch, executive chairman of News Corp and co-chairman of Fox, scrapped last January.
A slump in corporate advertising spending as inflation and interest rates rise has hurt one of the main sources of revenue for companies such as News Corp, which publishes the Wall StreetJournal. “A spike in interest rates and runaway inflation have had a tangible impact on all of our businesses,” chief executive Robert Thomson said in a statement.
To combat the downturn, Thomson said there are a number of initiatives underway, including job cuts. The layoffs will result in annual savings of at least $130 million.
News Corp’s profits fell 3% from a year ago to $139 million, while ad revenue fell 10.6% to $464 million.