Guardian Embraces Austerity

As we go to pixel, a major company meeting is taking place over at King’s Place where Guardian staff are being informed of 20% cuts to be imposed on their publisher, Guardian News & Media. The meeting had to be split into two parts – one at 11am, a second at 2pm – because the Guardian has so many members of staff. A neat illustration of the problem…

The key figures are:

  • Running costs cut by 20%, over £50 million
  • £52 million operating loss expected in year to the end of March
  • Operating costs reach £268 million, up 23% in the last five years
  • Cash and investment fund down £100 million on last year
  • Print advertising falls by 25%

Unbelievably the investment fund, which was supposed to finance The Guardian’s losses in perpetuity, lost 12% – down £100 million from £838 million to £735 million. Who is trading the fund, William Keegan?

GNM chief executive David Pemsel isn’t commenting on potential job losses. He told staff today: “It’s very easy to look back and say the Guardian has made mistakes”. Worth noting that Alan Rusbridger spent £4.5 billion during his tenure as editor…




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Quote of the Day

Nick Timothy on George Osborne’s latest:

“Evening Standard editorials will soon be shortlisted for the Booker Prize.”

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