Rupert Murdoch's News Corporation has vowed to slash jobs after a sharp drop in second-quarter earnings.
The media conglomerate reported on Friday a 64 per cent decline in income in the quarter ending December 31, down to $US94 million ($A135 million) from $US262 million ($A376 million) the year prior.
In response, News Corp announced a five per cent reduction in staff, or 1250 jobs, in the coming months.
The company says the job cuts will save $US130 million ($A186 million) per year.
Revenue dropped seven per cent to $US2.5 billion ($A3.6 billion) while profitability fell 30 per cent to $US409 million ($A586 million).
CEO Robert Thomson blamed a surge in interest rates and inflation for the slump in earnings, with book publishing, news media and digital real estate the worst-hit segments.
News Corp will pay shareholders an interim dividend of 10c after earnings per share collapsed to 12c from 40c the year prior.
