Tuesday, 02 August 2011
The rise of streamlined online recruitment portals is thought to be a significant factor in the falling revenues of the Guardian News & Media (GNM) group.
GNM - which has long relied on its recruitment advertising as a major source of revenue - has posted operating losses of £38.3 million, despite cost savings and on-going redundancies. It has laid some of the blame on the falling income from its recruitment service.
The service has been hit hard by the rise of flat fee recruitment and fixed price recruitment facilities and the ease with which companies can set up their own online recruitment sites.
The group's chief executive, Andrew Miller, said that they were devoting enormous resources to devising a new digital media strategy for the company, aimed at addressing the integration of automated processes.
"The media sector continued to face major challenges in 2010/11, of which the greatest was the on-going transition from traditional to digital media," he explained. "The development of new business models to meet these challenges remained the key issue for the industry."
He said the new strategy would see senior management restructured and a transformation of the core GNM business that would "[ensure] the Guardian’s long-term economic sustainability."