Friday, February 6, 2009

News Corp. lay-offs inevitable: analyst

News Corp says it will lay off staff in Australia as part of a global cost cutting plan as the media conglomerate faces slumping print advertising revenue and a higher costs for write-downs.

"We are implementing rigorous cost-cutting across all operations and reducing head count where appropriate'' in an effort to preserve profitability, said chief executive Rupert Murdoch in the company's earnings release.

Mr Murdoch this morning told analysts the company would combine back office operation at Australian divisions, which would save money and lead to smaller staff numbers.

News Corp doesn't have a choice in announcing the job local job cuts, said equities analyst Tim Morris of "They must cut their cost base.''

"Each employee is going to find themselves doing more than they`ve done before,'' he said. "This is what happens during these periods.''

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