February 7, 2009
Rupert Murdoch’s News Corp wrote down half the value of Wall Street Journal parent Dow Jones & Co, which it bought for $5.6 billion in 2007, according to a U.S. regulatory filing on Friday.
The company said in a separate statement that it plans to save an additional $40 million at Dow Jones in the fiscal year ending in June 2010. That would be on top of $100 million in costs savings implemented since buying Dow Jones in 2007, News Corp said.
A spokesman declined to reveal the total number of staff cuts News Corp plans for Dow Jones or how many jobs it has eliminated already.
A memo was sent to Dow Jones employees on Thursday that said The Journal had cut 25 jobs but that there would not be layoffs at Dow Jones Newswires.
Rupert Murdoch’s media conglomerate said cost-savings measures that Dow Jones has made include outsourcing some jobs, consolidating office space and integrating Dow Jones’ corporate functions with those of News Corp.
Dow Jones said it would freeze employee salaries, which Reuters previously reported based on a memo that it obtained.
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