Dear All

Yesterday was a day of great sadness for the News of the World and I know all of you felt deep sympathy for colleagues. I want the whole of the company to know and recognise the following things about colleagues at the News of the World.

That team, led by Colin Myler, are hugely talented, dedicated and professional. Moreover, they are respected by their peers throughout the industry.

They have endured unprecedented scrutiny while propelling the paper to award after award. While mistakes of the past have led the country's news agenda, News of the World exclusives have set the news agenda around the world.

Importantly, too, News of the World has touched readers' lives in many other ways – such as the Children's Champions Awards, the For Sarah campaign, Go Green and Save, and the crusade to make the Military Covenant law.

These are great achievements and every member of staff should feel proud of them.

The company will focus over the coming months on finding as many jobs as possible for the News of the World staff both within News International and the wider company.

Retaining talent is very important and I have asked all the other titles to fill current vacancies with those from the News of the World where possible. No decision has been taken yet on any new publications or expanding existing ones. We will retain Fabulous which is a credit to everyone who has made it such a successful and award-winning magazine.

All current staff will be paid for the next three months. We have begun full consultation with NISA [News International Staff Association] and will offer support and provide regular updates to everyone affected.

We will make sure that any redundancy packages will be fair and are meeting NISA on Monday to start discussions over severance terms and redeployment options. In addition, we are working on a framework for a bonus scheme.

I would also like to apologise for any operational problems in the newsroom that are a direct result of our co-operation with the police.

I held a town hall meeting with News of the World staff at 4pm today to answer questions about what will happen next.

In response to media coverage today, I would like to address several additional points relating to the ongoing police inquiries and my role.

News International is not leading an investigation into itself because that could interfere with the work of the Metropolitan Police. What we are doing is assisting the police, who are entirely independent, with their work. We are all clear about one thing: the police will follow the evidence no matter where it takes them. The strongest action will be taken whenever wrongdoing is proven.

People have asked if it is right for me, as CEO of News International and as the Editor of the News of the World until January 2003, to oversee our efforts to assess allegations, address serious issues and prevent them from happening again. I'm determined that News International does this.

For the avoidance of any doubt, however, the News Corporation independent directors agree with James Murdoch's recommendation that the Management and Standards Committee, comprised of Will Lewis, Simon Greenberg and Jeff Palker, report directly to Joel Klein in New York. Joel is leading and directing the company's overall handling of this matter. Many of you will know that Joel is a respected former assistant attorney general of the United States. Joel and Viet Dinh, an independent director, are giving oversight and keeping our parent company's Board advised as well.

James outlined the standards this company demands in his message to you yesterday. These standards apply to everyone, first and foremost to me as News International's chief executive.

As a company we welcome the prime minister's calls for broad public inquiries into media standards and police practices. We are working hard to put our own house in order and do the right thing. Change and accountability will come through cooperating with criminal and civil inquiries and respecting due process during the tough times ahead.

For this week, however, the News of the World staff have the toughest and most important job of all. I know they will produce a final issue that we will make us all proud.

Rebekah