Murdoch's News Corporation reports $6.4bn loss in three month

The heavy losses incurred for the three months ended in December reflected the media conglomerate's decision to write down $8.4bn of its assets – including those of Dow Jones, the American news and financial information company it acquired in 2007 for $5.6bn.

But with the recession biting into advertising revenue, the company's many outlets failed to buck the downturn and Murdoch raised the prospects of further job losses.

"While we anticipated a weakening, the downturn is more severe and likely longer lasting than previously thought," he said. "As a result, we have been taking actions to preserve a solid level of operational profitability and a strong balance sheet without sacrificing future growth. We are implementing rigorous cost-cutting across all operations and reducing head count where appropriate."

The Wall Street Journal, one of the last major US daily newspapers to avoid deep cuts to its news gathering operations amid a historic industry downturn, is trimming about two dozen newsroom jobs.

Robert Christie, a spokesman for the newspaper's parent company, Dow Jones & Co, said the Journal will make cuts to both its reporting and editing staff through a combination of layoffs and buyouts as well as eliminating open positions.

In a memo to staff, Journal managing editor Robert Thomson said the newsroom has already lost 11 reporters through attrition, but 14 more jobs will be eliminated in a new restructuring effort.

Thomson said the paper's New York-based fashion and retail group will be shuttered, with some reporters and editors shifted to other bureaus.

The Los Angeles and Boston bureaus will each lose a job as well as the law, health and real estate groups in New York.