IN&M to cut staff numbers by 5% in restructuring plan

Independent News & Media is to cut staff numbers by 5% as apart of a €53.5m worldwide restructuring plan detailed today in a trading statement.

The company said it had identified 'significant opportunities for further cost efficiencies and savings'.

This will generate incremental annualised cost savings and profit improvements building up to €18.4m by the end of 2005.

The €53.5m restructuring cost will be paid for by the capital gains made on disposals during the year.

Last week, IN&M sold its London regional newspaper division to Archant for €88.7m.

It will also be financed on a phased basis from internal resources.

IN&M also said that based on this year’s fourth quarter trading, advertising levels continued to improve and circulation revenues remain firm going into 2004.

The Group will continue its strong focus on cost efficiencies, cost control and cash generation.

Advertising revenues for 2003 continue to trade ahead of 2002 levels while circulation revenues continued to show ‘solid advances’.

The launch of the London Independent in tabloid format has far exceeded group expectations and has already delivered a 20% plus sales increase despite only being available in half the UK at the moment.

Because of this success, the compact rollout has been accelerated and will be available throughout Britain in early 2004.

Executive chairman, Tony O'Reilly, said today: "The Group has a uniquely diverse geographic base and leading market positions, supported by a greatly fortified balance sheet.

“As global markets recover, these strengths will allow Independent to deliver not only an improvement in earnings for 2003 - in line with market consensus forecast - but an enhancement in the value of the Company for employees and shareholders alike," he added.