News Corp. Plans More Layoffs

Does that mean us, too?

Yesterday, during the News Corp. second quarter report for fiscal year 2023, CEO Robert Thomson announced plans to slash 5% of our workforce, some 1,250 positions.

“The 5% reduction will be across all businesses and it will be conducted in coming months with a view to concluding this calendar year,” Mr. Thomson said during the earnings call.

IAPE has asked Dow Jones whether cuts announced on Jan. 11 constitute our contribution to News Corp.’s layoff plans, or whether staff should be expecting more layoffs in 2023. The initial response from Dow Jones representatives is that the company has no additional information to share.

So, how will this affect IAPE members, especially as we prepare to start negotiations on a new contract?

Here’s what we know: News Corp. companies have already conducted layoffs this year. On Jan. 31, HarperCollins announced plans to cut staff by 5% before June 30, the end of the fiscal year. Thirty days ago, Dow Jones eliminated between 1% and 2% of global positions with layoffs of its own. These cuts affected 22 union-represented employees, totaling 75 positions once non-union jobs were included.

When layoffs occur, the company is required to provide the union and affected employees with at least 30 days’ advance notice. Recent IAPE surveys indicate there is some misunderstanding about that requirement: the layoff notice period began on the date Dow Jones announced layoffs last month.

Union-represented staff impacted by that decision have remained on payroll, all without a requirement to continue working. The effective separation date for the January layoffs is today. Severance sums required by the IAPE/Dow Jones contract will be paid to all on Feb. 23, while negotiated, post-termination healthcare coverage will begin on Mar. 1.

There were a small number of irregularities that affected notification, classification and severance pay associated with those layoffs. These were discovered by IAPE during the standard investigation conducted by the union whenever Dow Jones announces position eliminations. Those issues have now been resolved to the satisfaction of the union.

If News Corp. and Dow Jones choose to reduce headcount again this year, IAPE will ensure that all contractual protections are followed. If you have questions or concerns about the possibility of layoffs at Dow Jones, please contact the IAPE office.