Tuesday, October 28, 2008

Breaking: Dickey memo said detailing budget cuts

My tipsters say newspaper division chief Bob Dickey is expected to issue a must-read memo as soon as 1:30 p.m. ET today, on a subject we've been discussing a whole lot lately.

Here's the latest -- which I haven't been able to corroborate -- from one of the tipsters: "A note from Bob Dickey will go out to all Gannett employees at 1:30 p.m. EDT today/Tuesday re: job cuts. The headline is that GCI is cutting payroll by 10%, with cuts taking effect the first week of December. News staff will take a hit. Employees affected by job eliminations will be paid one week of salary for each year of service, up to a total of 26 weeks of severance pay."

Other developments, according to that same tipster:
  • Newshole will be reduced by 10%. Editors will be getting guidance and timetables this week.
  • Color news positions will be reduced.
  • Total number of classified pages will be reduced by two in the Monday and Tuesday editions.
  • Pay increases in 2009 will be based on a total 1.5% of payroll.
Any further cuts would follow last week's third-quarter earnings report, revealing profits fell 32% from a year ago -- leading Chief Financial Officer Gracia Martore to warn of more job reductions by the end of the year. Her warning followed similar remarks by CEO Craig Dubow one week before.

To emphasize, these are tips from sources I know in four different states -- but they could be wrong. Anyone else picking up on this? Please post your replies
in the comments section, below. To e-mail confidentially, write gannettblog[at]gmail[dot-com]; see Tipsters Anonymous Policy in the green sidebar, upper right.

4 comments:

  1. Here's Dickey's memo:

    October 28, 2008
    To: USCP Publishers & General Managers
    As all of you are painfully aware, the fiscal crisis is deepening and the economy is getting worse. Gannett’s revenues continue to be severely impacted by this downturn, and our local operations are suffering. While we are doing our best to reduce all non staff-related expenses, I am sorry to report that we must do another round of layoffs across our division.
    To that end, we will institute an involuntary staff reduction of approximately 10% by the first week of December. The terms of the severance will be one week for each year of service with a cap of 26 weeks.
    Each Publisher is responsible for developing their local plan to achieve the expected goal. Decisions will be made locally because each of our markets is unique, with differing market conditions and individual needs in light of our previous reductions.
    I have asked that all plans be completed by November 14th at which time they will go through the standard review process.
    I fully understand this announcement will cause you concern but I felt that once a decision was made it should be communicated as quickly as possible.
    While this is more bad news, it is a sign of Gannett’s determination to remain healthy and viable as a company during these turbulent economic times. We continue to be a leader in our industry, not only because of our fiscal strength but also because we have a plan to aggressively grow the company when the economy returns.
    To that end, I encourage you to contact me with your thoughts and ideas. We need to grow revenue as well as continue to find efficiencies. I would appreciate your help and ideas on both fronts.
    My email address is rdickey@gannett.com. I promise you will be heard and receive a timely response.
    I appreciate your understanding and commitment during these challenging times.
    Thank you.

    ReplyDelete
  2. Here's a question, Mr. Dickey:

    Do the layoffs and cutbacks stop here, or should Gannett employees keep that resume up to date and keep looking at Career Builder and Craigslist for job openings?

    ReplyDelete
  3. Don't use Careerbuilder! Why give the SOBs more page views.

    Use only: Monster.com and craigslist.com

    ReplyDelete
  4. Only Gannett would reduce newshole further, weaking their product which is already one that less and less people are finding valuable. BRILLIANT!

    ReplyDelete

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