Europe’s largest magazine publisher Bauer Media Group will make job cuts as part of a major restructure of its digital businesses in the UK and Germany.

Bauer cited the impact ofGoogle’s AI Overviews reducing clickthroughs to publisher websitesas well as “under pressure” and “fragmented” advertising models.

Bauerwill shut its digital business in Germany, Bauer Xcel Media Deutschland KG, on 30 September, impacting all of the division’s 160 employees.

In the UK where Bauer publishes titles like Empire, Grazia and Heat, it is proposing to restructure its digital publishing businesses with jobs at risk. A consultation process has begun.

Digiday reported that the cuts could affectup to 30%of all Bauer’s publishing staff.

Bauer said in a statement: “In recent years, the digital publishing environment has changed significantly. Technological disruption, particularly the rapid rise of AI, is reshaping how audiences access content, with users increasingly receiving answers directly via platforms rather than visiting publisher websites.

“At the same time, platform dynamics, user behaviour and monetisation models are evolving. Advertising markets remain under pressure, while affiliate and commerce models are becoming more competitive and fragmented. As a result, it has become increasingly challenging to operate digital publishing businesses profitably at scale.

“In response, Bauer Media Group is proposing to restructure its digital publishing business — integrating digital activities more closely into existing publishing structures and enabling a sharper focus on their portfolio and improved long-term profitability.”

Bauer said it will create “new opportunities in areas aligned with its future focus” as part of the changes and add that it will “continue to invest where sustainable growth potential exists”.

Bauer Xcel Media has been the global division for Bauer’s digital businessessince 2015.In Germany its digital operations will consolidate around food and recipe title Lecker, TV and entertainment guide TV Movie and astrology website Astrowoche, and these will be integrated into the main publishing organisation.

Source: Press Gazette