From The Financial Times:
The Guardian newspaper is braced for significant job losses after it burnt through more than £70m in cash last year, according to people familiar with its performance.
The left-leaning publisher, which runs one of the world’s most popular news websites, is preparing to embrace austerity as it cuts costs across the business.
It follows a year of torrid trading — marked by a sharp fall in print advertising sales, a rise in online adblocking, and a difficulty in making money from mobile devices.
. . . .
Rasmus Nielsen, director of research at Oxford’s Reuters Institute, said the Guardian was “taking a big bet” by investing in building an online audience.
“It’s been thinking more like a Silicon Valley start-up than a player in a sunset industry facing decline,” he said. “It needs to cut costs and increase revenues.”
. . . .
The Guardian has been lossmaking for more than a decade, but is nonetheless among the most financially secure publishers on Fleet Street. Its parent company, Guardian Media Group, has an investment fund of more than £800m, mainly compiled through the sale of its car classifieds business Auto Trader. That fund would need to make an annual return of 9 per cent in order to sustain the Guardian’s current cash outflow indefinitely.
. . . .
“What people expect from the Guardian is different from what people expect from BuzzFeed,” said Mr Nielsen of the Reuters Institute. “The risks if you get it wrong are much bigger.”
Link to the rest at The Financial Times (if you hit a paywall, do a Google search for the title of the article) and thanks to Barb for the tip.