The publisher of The Guardian, GMG, is to scrap its 30,000sq.ft. events space project at Kings Place, London, and has warned staff that 250 jobs will have to go in order to cut £54m a year from its running costs. The news was delivered to staff this week by editor Katherine Viner and chief executive David Pemsel.
A further 60 positions are expected to disappear by the publisher not filling vacant positions.
The company is reportedly running operating losses totaling £58.6m for the year to the end of March and some 100 editorial jobs are slated to go, with compulsory redundancies not ruled out.
The Guardian has a three-year plan to break even by 2018/2019.
Proposed changes include reducing the amount of space it occupies at Kings Place, and the publisher confirmed it would be scrapping plans for the events space and cultural venue in the Midlands Goods Shed.
The venue project was advanced and announced in September 2014 as the flagship of the Guardian Membership scheme.
Viner and Pemsel said: “We do not believe that the concept we had planned for the Midland Goods Shed now fits with our business strategy. We are, as such, proposing to exit the lease and have advised our landlord, contractors and programming partners accordingly.”