A drama is unfolding at Argus Newspapers, where a top business consultant has been brought in to streamline the corporation. Drew Forrest reports
A TOP Australian business consultant is at the centre of a convulsion in Argus Newspapers that has already brought job cuts at the Pretoria News, the axing of the group marketing team and a management shake-up in Durban and Cape Town. Staffers are anxiously awaiting the next act in an unfolding corporate drama.
Melbourne-based consultant Chris Tippler was described by one source as “the in-house Rottweiler” of Irish baked beans tycoon Tony O’Reilly, whose Independent Newspapers last year bought the Argus group’s newspaper interests.
Tippler spearheaded the financial revamp of other papers acquired by O’Reilly in Australia and Ireland. Described as “very bright” and “an able facilitator” by other sources, his role is to make recommendations on how Argus Newspapers can meet O’Reilly’s exacting profit requirements.
Natal Newspapers managing director Ed Booth confirmed that O’Reilly’s concern was “to get a return on his investment — he wants a lean, mean ship”. Some sources indicate that O’Reilly is looking for a 25 percent return, while the current figure is closer to 10, and that Argus Newspapers are being set targets.
The shake-up apparently follows Tippler’s return to South Africa after an earlier information-gathering trip here. It began with the announcement that Mossie van Schoor, former editor in chief of the Daily News, is to take over as editor in chief of Natal Newspapers — embracing the Daily News, Natal Mercury, Sunday Tribune and Post Natal — and that Sowetan general manager Rory Wilson is to manage the Argus’ Cape Town titles, the Cape Argus and Cape Times. One implication of this is that Mercury editor John Patten has been taken down a notch.
The underlying principle is to create three strong regions — Natal, Cape Town and the PWV — under unified editorial and business leadership.
In a third salvo this week, it was announced that the Pretoria News would shed staff as part of a rationalisation exercise involving the transfer of printing and of the greater part of its financial administration to The Star building in Johannesburg. The Pretoria News is also to move into the morning market, making it a 24-hour operation.
The scale of redundancies is not yet clear — between seven and 15 have been mentioned — but both journalists and works staff will be affected.
The Argus papers now under closest scrutiny are the Cape Times and the Natal Mercury, which are seen as under- performing.
Tippler is said to be concerned that Argus papers operating in the same centres should not compete. In Durban the plan is to move the Mercury up-market. Moves to create different market niches for the Cape Argus and Cape Times are afoot in Cape Town.
After his other newspaper take-overs, O’Reilly gained the reputation of scything through the top editorial and business echelons and moving in more junior figures at lower salaries.
Argus group management has already been drastically trimmed. Last week group marketing chief David Mead and his team were axed and the group personnel manager, Roger Wellsted, shifted to the Sowetan. However, insiders insist that the current Argus editors are not in jeopardy.
Reorganisation in the PWV poses more complex problems than in other regions. According to editor of The Star Peter Sullivan, no decision has yet been taken and there will be no announcement before next month.
One difficulty is that an overarching management and editorial regime must span two cities, Johannesburg (base of The Star and Sowetan) and Pretoria (base of the Pretoria News). Another is the choice of regional editor- in-chief — if there is to be one.
Sullivan said reorganisation would not affect The Star editorial floor, as The Star was “spot on” in terms of international norms. He would not comment further.