BENGALURU: Reach Plc said on Wednesday its annual operating profit would miss market expectations and it would cut around 200 jobs, as the British news publisher struggles with weak digital and print advertising, knocking shares 24% lower.

The owner of newspapers such as the Daily Mirror and Daily Express said it expected challenges to persist in 2023 and that it would start cutting costs to save at least 30 million pounds ($36 million).

As part of the savings drive, the company will axe about 4% of its workforce, or around 200 jobs, including journalists and commercial teams, a spokesperson said.

Reach, which employs over 4,500 people, has informed employees that consultations would start immediately, he added.

“Near-term economic conditions remain uncertain, creating unavoidable headwinds for the whole sector, with advertising weakness and prolonged cost inflation,” the company said in a statement.

Businesses staring at a possibly lengthy recession and a worsening cost-of-living crisis are cutting back on their advertising spend to save costs.

Digital revenue fell nearly 6% and print advertising revenue slumped about 20% in the three months to Dec. 25, hurt partly by lower campaign spends around Black Friday and Christmas. Circulation revenue grew by 1.8%.