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INM to cut London Independent staff by up to 40 per cent
Sunday, November 02, 2008 By Richard Curran
Independent News & Media (INM) is targeting a 40 per cent cut in the workforce at its British Independent and Independent on Sunday newspaper titles as part of a plan to share production and back-up services with other newspapers.

The move could see the Independent reduce staff numbers by 100 to 200 people in the months ahead. INM made a reference to the plan in a trading update issued last Friday. It said the company was taking steps to ‘‘resize its cost base’’.

‘‘As part of that process, the British national division is in discussions with a number of other British national publishers on a shared services basis that is expected to deliver substantial efficiencies and is designed to create more efficient editorial work flows, while preserving the unique ethos of the Independent.”

It is understood that writing staff would not be affected by the plan but other functions, from production to advertising, could be included in any new shared arrangement.

Elsewhere in the group, payroll costs are under active review and may lead to job losses with ‘‘further headcount reductions having been identified’’, the company said.

The trading statement referred to a possible sale by INM of its 39 per cent stake in APN in Australia. Sources close to the group said there were no plans to dispose of the Independent.

Industry sources commented that such a move could not be ruled out in future, but said that in the current market, it would be extremely difficult to land a buyer.

Dissident shareholder Denis O’Brien criticised the decision to sell APN and questioned why INM was selling a profitable business rather than unprofitable parts of the group such as the Independent.

A sale of the APN stake would see the group exit Australia and New Zealand, two strategically important locations in recent years.

INM may receive around €270 million in cash from the sale as well as being released from APN’s €530 million debt. Around €200million is needed to refinance INM’s 5.75 per cent bond due in May 2009.

Davy Stockbrokers welcomed the APN announcement and said the group remained resilient.

But O’Brien said that, despite a deteriorating financial performance, the company had pursued a €130 million share buy-back.

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