Reach, the London-listed publisher of the Daily Mirror, Express, Star and OK magazine, has placed 20% of its workers on furlough amid the COVID-19 crisis.
Staff on furlough
The print and digital publisher said all members of the Board, along with some members of its most senior editorial and management team, will take a pay reduction of 20% effective immediately.
All company bonus schemes for 2020 have been suspended; however the Board retains its discretion over the Long Term Incentive Plan.
Employees will also be imposed on with 10% pay reduction, although no employee falls below Living Wage.
It added that 20% of Reach colleagues will be furloughed under the Government’s Coronavirus Job Protection Scheme in the UK. It also said it will register for the Temporary Wage Subsidy Scheme in Ireland.
There continues to be uncertainty around the severity and length of the crisis; and the resulting impact on Reach in terms of advertising, print circulation and events.
As a result Reach has suspended guidance for the financial year 2020 and beyond.
However, it has taken a number of cash conservation measures including removal of discretionary spend; appropriate renegotiations with suppliers; cancellations of orders and negotiated payment delays.
“These are very challenging times and I would like to thank all our colleagues at Reach for their support and commitment”, Jim Mullen, CEO of Reach said.
“It remains difficult to predict the duration and long term impact of the crisis on our sector so it is key we take proactive measures now on cost to protect jobs and the Reach business for the long term.”
Reach shares were 7.78% lower at 83p in London on Monday.