Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Fairfax Announces Business Improvement Program

Tuesday 26 August 2008
MEDIA STATEMENT

Fairfax Media Announces Business Improvement Program


SYDNEY, August 26, 2008 – Fairfax Media Limited [ASX:FXJ] said today it would begin implementing during the first half of the 2009 financial year a business improvement program across the Group’s corporate division, Australian publishing and printing businesses and Fairfax New Zealand. A wide range of initiatives will result in a head count reduction of approximately 550 employees in Australia and New Zealand, or approximately 5% of the Company’s full time workforce.

The program will deliver around $50 million in annualised cost savings. Approximately $25 million of the savings will flow into the 2009 financial year result.

The Company will book a one-off charge of approximately $50 million for redundancy and associated costs.

Mr David Kirk, CEO, said:

“This is the third wave of business improvement initiatives we have undertaken over the past three years. Over the course of the 2006 and 2007 financial years we achieved $52 million in ongoing real cost reductions. Cost synergies associated with the merger of Fairfax Media and Rural Press and the acquisition of Southern Cross radio produced a further $53 million in savings ($45 million Rural Press, $8 million radio). All of these synergies will be realised by the end of this financial year.

“With the new organisation structure in place and line management operating effectively, now is the time to launch a third wave of business improvement which will deliver benefits over the next two years.

“Media companies fit for the modern media world need to be lean and agile. This far-reaching program will position us well for the next stage of our growth and development.”


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO:

Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>

ALSO: