INM to axe 100 jobs as it seeks to cut costs
The planned measure will cut 10% of INM’s Irish staff numbers, lowering head count from 1,100 to 1,000. Cuts are envisaged across all aspects of the company’s operations in this country.
The group cut operating costs by €9.2m last year, with a cost reduction of around 8% in its Irish operations alone.
Cost reductions of around €26m were planned but a sizeable chunk of that figure has already been realised.
While INM technically employs 2,800 people internationally, that figure will substantially reduce with the completion of the agreed sale of its South African operations. Shareholders are due to vote on that transaction in June.
Yesterday, on the back of its 2012 financial results, management said trading conditions since the start of this year have “continued to be very challenging”. Revenue has fallen although the impact on profitability has been mitigated by reduced newsprint prices and other cost reductions.
“Forecasting in these tough and challenging conditions is very difficult and visibility remains short,” said INM chief executive Vincent Crowley. “However, cost reduction initiatives — implemented to date and planned — are targeted to assist in mitigating much of this revenue shortfall.”
The latest figures show INM made a pre-tax loss of nearly €255m last year, up from a loss of €63.6m in 2011. Group revenue fell by 3.3% to €539.7m, with basic losses per share increasing by 500% to 44.5c. Its Irish revenues fell by 2.3% to just short of €355m.
On a busy day for INM, in which it also unveiled details of a complex debt restructuring deal, the group said a further 10.4% year-on-year reduction in revenue has been noted since the start of 2013, with circulation revenues down 8.8% and advertising revenues falling by 13.4%.
The group has also entered discussions with the trustees of its Irish pension scheme, in a bid to lower its €162m deficit.
