The media conglomerate News Corp. stated on Thursday that it will be cutting off 1,250 workers after the corporation missed the second-quarter profits estimate due to a lack of progress in its news and digital real estate divisions.
The key sources of income for conglomerates like News Corp, which owns major publishing platforms including the New York Post and the Wall Street Journal in the US, the Times and the Sun in the UK, have been negatively impacted by higher interest rates and growing inflation.
‘A jump in interest rates and sharp inflation has a palpable impact on all of our companies,’ chief executive Robert Thomson said in a statement.
‘The initiatives now underway, including an expected 5% headcount reduction, or around 1,250 positions this calendar year, will create a robust platform for future growth,’ he added.
The company’s shares fell by 1.4 per cent in extended trading after its first quarterly report since Rupert Murdoch had pulled out from a proporal to reunite the owner of Dow Jones and Fox Corp, which is headed by his son Lachlan Murdoch.
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