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Dow Jones Says It Reduced Costs $100 Million In ’08, Promises $40 Million In Savings For H109

Perhaps trying to validate News Corp (NYSE: NWS) Chairman and CEO Rupert Murdoch’s earnings call line about “not tolerating any fat,” the Dow Jones unit claims it lowered operating costs by more than $100 million. The company, which houses WSJ, Barron’s and the Dow Jones NewsWires businesses, also says it find another $40 million by the end of June. Of course, that didn’t do much to ease the $8.4 billion Q4 writedown News Corp took on its acquisition of Dow Jones, but these days, anything helps. Aside from the 25 posts eliminated yesterday at WSJ (11 in editorial), DJ says it didn’t count on cost reductions to wring a $100 million in savings; it also invested. Here’s the rundown:

Share and share alike: After completing the $5.6 billion merger in December 2007, DJ quickly began relying on News Corp.’s auditing, tax and treasury services. It then looked to pool a variety of resources with News Corp tabloid NY Post. Mundane efforts like outsourcing and consolidating office space, re-bidding contracts for services on top of a salary freeze and deferring new hires also contributed.

Expand and extend: Building out WSJ‘s general and international news coverage, as well as new sports, arts and opinion features, thanks to the addition of four more print pages, helped drive individual paid subscriptions up by 2.4 percent in Q4. Murdoch seized on that figure during the earnings call, claiming that no major paper in America could match it. The company said that new investments to,,, and the other sites of the Wall Street Journal Digital Network produced 76 percent higher collective traffic and 37 percent rise in pageviews last year. While all that has certainly made the company’s offerings, another investment might not pay off so well in a down economy. The purchase of Winner

One Response to “Dow Jones Says It Reduced Costs $100 Million In ’08, Promises $40 Million In Savings For H109”

  1. digital bear

    does anyone read the wsj or allthingd? wsj was on track to do the "right" things to modernize the franchise in the first 14 months after the acquisition but it looks like from the recent coverage against obama that they are heading into the culture wars / ratings wars to save such a venerable franchise. LONG LIVE the! Rupert's inherent age "issues" are clearly impacting his ability to realize the fact that WSJ readers are intelligent enough to notice changes in editorial reporting & opinion coverage. Save your culture wars for Fox, Rupert, or else you might lose; some of your AllThings willing to take a stand for their rights…but then again…