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In a trading update DMGT said: Given the challenging market conditions facing certain businesses within the portfolio, reorganisation initiatives are being implemented to protect their profitability.
These initiatives will create a greater strategic focus and enable more effective decision making across the Group, with the aim of generating future benefits and opportunities for long-term growth.
The reorganisation initiatives, which include headcount reductions, are expected to result in total cash-related exceptional operating costs in the current financial year of approximately £50 million, rather than the £15 million previously guided to in May 2016. Approximately £35 million of the expected costs directly relate to the reorganisation.