6 Feb 2009

News Corp flags job cuts

12:11 pm on 6 February 2009

News Corp has flagged job cuts after reporting a $US5.9 billion first half net loss amid a "grim economic climate".

The media group also on Friday posted a net loss of $US6.417 billion for the second quarter, with the impact of the global financial crisis and a massive writedown dragging its result into the red.

The first half net loss compared to a net profit of $US1.564 billion in the first six months of 2007/08.

Chairman and chief executive officer Rupert Murdoch said the results reflected the tough economic times. He said News Corp would cut costs and axe jobs.

News Corp said its Australian newspapers were hit in the second quarter. Income was down by 18%.

The company told analysts that its 2008/09 operating income is expected to be 30% lower than the previous year.