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Will a restructure be enough in what is a volatile sector, Alasdair Reid asks.
It's turbulent times for all newspaper groups. With copy sales continuing to slide away, the upmarket dailies (three of the four, at any rate) have introduced radical design overhauls while trying to get the best out of the internet. The pace of change is expected to rise.
Now they're all revisiting the whole issue of costs and looking to maximise the efficiency of their internal structures. Last week, it was the turn of Guardian Newspapers to unveil a new 'organogram' designed to extract the most value from its existing assets.
The Guardian, The Observer and Guardian Unlimited - including ad sales - will sit in a new division called Guardian Content. The existing Guardian Recruitment Solutions will continue to be headed by Helen Bird. There will be two further divisions: Enterprises will maximise revenues from Guardian Weekly, Guardian Films, Guardian Books and Money Observer while driving content syndication in general; Guardian Professional will look after Guardian Newspapers' business-to-business and educational interests. The rejig also has wider implications for Guardian Media Group.
1. Guardian Media Group will arrive at a crossroads when Sir Bob Phillis retires at the end of July.
GMG was set up in 1993 as a rebranding of Guardian & Manchester Evening News. It signalled the group's intention to accelerate its diversification strategy. That gained real momentum with the arrival of Phillis in December 1997. Phillis oversaw an expansion of the group's radio interests and in 2003, GMG consolidated its position in the magazine business, paying pounds 600 million to take full control of Trader Media, the car listings business whose flagship is the Auto Trader brand.
2. GMG is organised into four divisions: national newspapers, regional newspapers (concentrated in the North-West of England but also including Surrey Advertiser Group and Aldershot News Group), radio (five regional licences) and Trader Media.