Reach chapel calls for an end to devastating cycle of redundancies
The NUJ Reach Group chapel has passed a motion calling for the Reach plc board to stop mass redundancies across the company after a poor financial statement.
On 28 July, the Reach Group chapel met to discuss the half-year figures released on 22 July which show that group revenue is down 9% (£23.1m) so far this year, with digital revenues badly hit and down 11.4%.
Reps reflected that members were feeling frustrated and demoralised and that they were carrying the can for corporate failure.
The NUJ Reach group chapel passed the following motion unanimously:
“Reach NUJ Group Chapel notes the continuing slide in revenue for Reach plc and the disclosure that senior executives are seeking to turbo-charge cost-cutting to the end of the year.
“Our members are clear that the path to recovery through digital subscriptions and other growth opportunities - where the company is in control of its own destiny – cannot be littered with journalist job losses.
“The NUJ Group Chapel demands that the board calls a halt to further mass redundancies in the attempt to prop up an unrealistic £100m operating profit for 2026. Instead, there should be focus on an emergency rescue plan to give the business the breathing space it needs to survive. Constant cutting doesn’t work.
“The board should note that the steeper decline in Reach’s national newspaper titles (which still provide the bulk of its revenue and profits) occurred after their staffing was badly hit in the biggest redundancy cull in the company’s history. Continuing to charge readers more for less has been shown to be clearly unsustainable.
“We note that shareholders last week saw a reduction in their interim dividend for the first time in at least five years and suggest that dividends should be forgone in the short term in the interests of their future value once Reach safely bridges its £60m-a-year pension deficit payments commitment.
“Shedding the company’s journalistic assets now imperils the reputation and future of scores of trusted news titles, while also weakening the ability to produce quality journalism and compelling unique content which remains the route to business success.
“We therefore urge the Reach plc board to provide decisive strategic direction which maintains journalism that counts for readers and consumers but does not leave staff counting the cost of failure.”