British newspaper publisher Reach (RCH.L) said on Tuesday it would cut about 550 jobs - 12% of its workforce - after the COVID-19 pandemic hit circulation and advertising.
Reach, whose titles include the Daily Mirror and Daily Express, said second-quarter revenue declined 27.5%, with print revenue down 29.5% and digital revenue down 14.8%.
Chief Executive Jim Mullen said the company had seen increased adoption of its digital products, with customer registrations passing the 2.5 million mark during the pandemic.
“However, due to reduced advertising demand, we have not seen commensurate increases in digital revenue,” he said.
Shares in Reach, which were at a five-year high of 187 pence in February, were down 8% at 82 pence in early deals on Tuesday.
Jobs will be cut across both national and regional operations, Mullen said, in a plan that will deliver 35 million pounds ($44 million) in annualized savings at an estimated one-off cost of 20 million pounds.