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News Corp, the parent company of media outlets including the Wall Street Journal and Dow Jones, announced plans to cut 5% of its workforce, approximately 1,250 positions.
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The cuts are due to "obvious global challenges" and will occur in 2023, according to CEO Robert Thomson.
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The company reported a 7% decrease in revenue, to $2.52 billion, and a 64% decrease in net income, to $94 million, for the quarter ending December 31st.
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Ad revenue was down 11% year over year, to $464 million, and overall EBITDA decreased by 30%, to $409 million.
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The decline was primarily attributed to higher costs in the Dow Jones segment and higher operating expenses in the News Media segment due to inflation and foreign currency fluctuations.
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Dow Jones' circulation and subscription revenue increased by 17% ($61 million), driven by digital-only subscriptions at the Wall Street Journal.
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Digital-only subscriptions to the Journal rose 9% to 3.17 million, with total subscriptions up 4% to 3.78 million.
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News Corp has been in discussions with CoStar Group regarding a potential sale of real-estate listing company Move.
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The results for the December 2022 quarter also included one-time costs of $6 million related to the evaluation of a proposal to merge News Corp and Fox Corp, which was withdrawn by the Murdoch family last month.
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News Corp's CEO Robert Thomson believes the headcount reduction and other initiatives will create a "robust platform for future growth."