The Guardian Media Group (GMG), owner of The Guardian and The Observer, is set to announce a record pre-tax loss of £173 million ($228 million) on Wednesday.
The Financial Times has seen earnings figures circulated to senior executives at GMG and reported that the losses are set to be higher than expected.
The company’s pre-tax loss of £173 million follows a decision to write down £80m ($105 million) in the value of its stake in magazine and events company Ascential.
GMG will also shoulder a £20 million ($26 million) restructuring charge over severance payments. Some 270 staff have agreed voluntary redundancy as part of a job cuts round, while GMG is also closing 60 unfilled vacancies.
The Financial Times said GMG’s operating loss is set to be £69 million ($91 million), which is higher than the £58.6 million ($77 million) expected, due to a sharp fall in print advertising revenue.
A GMG spokeswoman declined to comment on the Financial Times story.
One section of The Guardian that will be hit by the cuts is MediaGuardian, according to Campaign. One reporter has taken voluntary redundancy, while another could report to the business desk as part of the changes.
A GMG spokesman told the magazine: “As part of our three-year plan we’re looking at addressing costs in all parts of the business and as such we’ve decided to reduce our print media section on a Monday from two pages to one. We remain committed to providing the very best media coverage from breaking news to in-depth industry analysis and comment.”
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