Updated
Updated · The Guardian · Sep 16
Reach Cuts 220 Editorial Jobs, Closes 3 Brands as Google Traffic Drops 46%
Updated
Updated · The Guardian · Sep 16

Reach Cuts 220 Editorial Jobs, Closes 3 Brands as Google Traffic Drops 46%

3 articles · Updated · The Guardian · Sep 16

Summary

  • 220 editorial jobs will go at Reach, which is also shutting KentLive, AberdeenLive and GalwayBeo while creating about 60 roles focused on digital revenue growth.
  • A 46% year-on-year drop in Google traffic helped drive the overhaul, as AI Overviews and AI Mode increasingly answer readers’ queries without sending them through to publishers’ sites.
  • £128.9 million in digital revenue fell almost 1% in the year to March 3, pushing Reach to prioritize subscriptions, longer-form video and “active engaged time” over raw page views.
  • 50,000 paid digital subscribers leave Reach short of its 75,000 target for the current financial year, after a September restructure already put 600 roles at risk and cut more than 300 editorial jobs.
  • Reach, whose shares have fallen 90% in five years, said the latest cuts reflect a broader shift in local news economics that it also blames partly on the BBC’s expanding local output.

Insights

With Google's AI wiping out 46% of referrals, will Reach's desperate pivot to subscriptions save its journalism or accelerate its downfall?
As AI overviews devour search traffic, can news publishers survive by abandoning page views for audience loyalty, or is it too late?