Metro International has announced 27 redundancies at its free newspapers in the US.
It has been reported that Metro was planning to put the titles up for sales.
But Metro announced today it was embarking on a restructuring plan to move the titles into profit – in agreement with joint venture partner The New York Times Company.
Executive vice president Robert Patterson said: “These measures are part of a comprehensive plan to move all of Metro International’s US operations to profitability. With this cost-efficient setup we have established a platform from which we can continue to develop Metro in the US.”
He continued: “The new structure will position Metro International’s US operations for continued growth, while delivering synergies in areas including administration, advertising sales, editorial and production. The reorganisation will also align management of the US business with Metro’s successful operating structure in other parts of the world.”
The restructuring costs have been estimated at $0.5 million – but will deliver annual cost savings of $4.6 million.