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AAP
AAP
Business
Jacob Shteyman

News Corp to slash hundreds of jobs as earnings crash

News Corp CEO Robert Thomson has blamed interest rates and inflation for the slump in earnings. (Lukas Coch/AAP PHOTOS) (AAP)

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.

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