"It is obvious to you all that we are in the midst of an unprecedented economic downturn," Dow Jones & Co. Editor-in-Chief Robert Thomson stated in the memo, adding, "We are also in the midst of an unprecedented increase in our readership, in print and online, but a precipitous decline in print advertising revenue has forced a close examination of our structures and of our costs."
Thomson added that there are no plans for lay-offs at Dow Jones Newswires, which has actually been expanding via the recent launch of a Spanish-language edition and an India regional edition.
"At theJournal, we are closing the New York-based Fashion and Retail Group, though we will maintain coverage and reassign some editors and reporters to other bureaus. Other groups losing a position include the Los Angeles and Boston bureaus, along with the New York-based Law, Health and Real Estate groups, and the Library."
The lay-offs follow a dismal earnings release by parent News Corp., which reported its biggest net loss ever, after taking an $8.4 billion write-down related to the value of its Dow Jones acquisition.