FT may cut staff to curb losses

Financial Times journalists have been asked if they would consider early retirement or voluntary redundancy, in a sign that the loss-making newspaper is preparing deeper cost cutting measures.

In a memo to the newspaper's editorial staff, Andrew Gowers, the editor said that he wanted to gauge interest in an "early retirement or voluntary severance" scheme that may become available early 2005.

Although the memo says that such a scheme may not be introduced, he said at this stage "it would be helpful for us to have an idea of demand".

No figure was put on the number of redundancies that could be sought. The FT employs about 500 journalists and other editorial staff. In 2003, the paper lost £32 million, as a slump in financial advertising hit overall revenues - reflecting the weakness in capital markets.

Since markets peaked in 2000, FT's advertising income has fallen by 60 per cent.

In the past two years, actions taken by FT's parents, Pearson, have reduced costs by £20 million a year, although the cuts have largely spared editorial staff.

As a result, the newspaper is expected to return to break-even in the fourth quarter of this year, according to a trading statement issued this month.

According to a report in The Time, daily today, Goldman Sachs, a leading global investment banking firm, is expecting Pearson to produce pre-tax profits of £413 million this year, on revenues of £3.9 billion.