Austerity Still Rules at Trinity Mirror

Trinity Mirror, the UK’s largest newspaper publishing group, is stepping up its programme of cost savings following the news that the publisher saw print advertising sales fall by a staggering £27 million in the first half of the year.

The group now plans to save upwards of £20 million in ‘structural cost savings’ over the course of 2017, an increase of £5 million on the previously set target. Cutting costs is actually one target Trinity Mirror is ahead of the game on, having already made savings of more than £10 million in 2017.

The publisher has also significantly reduced its levels of debt.

Speaking to journalists, Simon Fox, Trinity Mirror’s chief executive, said: ‘Whilst the trading environment for print in the first half was volatile, we remain on course to meet expectations for the year.

‘I continue to anticipate that the second half will show improving revenue momentum as we benefit from initiatives implemented during the first half of the year.’

Following the successful programme of cuts, the NUJ wants the publisher to reconsider its offer of a one percent pay rise made to staff earlier in the year.

Chris Morley, Trinity Mirror NUJ group coordinator, said: ‘It is disappointing that while Trinity Mirror has as good as wiped out its debt, it still clings to the same relentless cuts agenda that has failed to come good in the last ten years.

‘It is worrying that as it boosts its interim dividend pay-out for shareholders to 7.1%, the company trumpets that it has now expects to achieve £20 million cost cuts this year – a full £5 million more than was planned.

‘With that comes a £15 million restructuring charge, money that could be better spent addressing its stated strategic vision “that quality content will remain at the heart of our business”.

‘The company has professed to have identified “opportunities for greater investment in content creation”, but we say it needs to be substantial and it needs to be now.

‘Investment for quality content cannot be done in isolation, it also needs to be targeted at its staff who are delivering huge productivity gains for little financial thanks.

‘While the payout to shareholders is all well and good, our members in the regional titles have been offered a “pay cut”, a sub-inflation deal for this year of one percent. Trinity Mirror can clearly afford to do better given it spent £4.6 million buying back its own shares and judging by other figures in these results.’

By failing to reward staff during this difficult trading period for newspapers, you have to wonder if Trinity Mirror is cutting off its nose to spite its face. Saving money is one thing – but for the business to succeed long into the future it must also be able to focus on generating quality content and this is something it cannot do on the cheap.