- For 2009, the company's expenses for its qualified retirement plans may increase substantially as the market value of plan assets has declined as a direct consequence of the recent financial market disruption. The impact of changes in plan asset values will not be precisely known, however, until the end of 2008.
- The company has further plans to significantly reduce company wide expense levels in the face of these economic factors and the competitive pressures facing its businesses.
Gannett and other companies whose stock is owned by the public must file a 10-Q to formally report quarterly revenue and earnings; the company already made its informal disclosure last month.
What did I miss? Please post replies in the comments section, below. E-mail confidentially via gannettblog[at]gmail[dot-com]; see Tipsters Anonymous Policy in the green sidebar, upper right.
I saw that pension problem coming: they are either going to have to plus up their contribution to the old pension plan, or try to cut benefits. The trouble is that the buyouts are coming back to bite them, as many of those who left are claiming early retirement to draw out their money. Both GCI and the Foundation made the mistake of investing in funds keyed to the S&P average, and since that is down by more than half this year, their money pool is down by half. I predict this will be far more of a problem for the Foundation after draining the Foundation fund for all that money needed to build the the Newseum. It may have to close for lack of funds.
ReplyDeleteMore good news.
ReplyDeleteSomewhere on this blog someone posted that you could get your pension now, without quiting, getting fired or a through a layoff. Is this true? If so, please tell us how.
6:31 pm: I do not think that is true.
ReplyDeleteI unfortunately agree, there's bound to be further reductions in staff after the coming 10% cuts. The current ad revenues will drop dramatically now political ads are gone and it seems management is now preoccupied with managing layoffs. Everybody is doing their work along with that of coworkers who've been let go with the fear of either being let go themselves in the coming weeks or incurring more work. Does anybody feel anything positive in their work environment? A friend described the environment as simply being prepared for a crash landing.
ReplyDeleteIt is gut-wrenching because there is no end to it. Most people are dedicated enough to suck it up during hard times, work a little harder, be somewhat understanding about hiring freezes or low/no raises but when you know with near certainty that there is no recovery coming, that makes it agony. Not getting cut in this round is only a stay of execution until '09.
ReplyDeleteExactly right. I find it strange that we can find agreement on this blog of the dire situation we face, yet our management is still selling that everything is fine, the company is healthy, and this is the last party line. It is clearly going to get worse, and this is hardly the bottom. We are going through cycles of layoffs and cutbacks every three months. It is truly debilitating to get up each morning to face the office. There are no smiles, and hardly any laughter. It is all grim realization that this situation still has a long way to run.
ReplyDeletelooks like i picked a good time to make the jump to PR
ReplyDeleteWhere does Gannett get the money (what fund) to fund the qualified retirement plan expenses they're anticipating.
ReplyDeleteThey take the money for the old pension plan out of current revenues. So it comes out of the bottom line. There are federal rules that require them to maintain sufficient funds in the account to pay for current retirees.
ReplyDeleteWill this affect those of us already getting our pensions?
ReplyDelete7:40 -- What benefit would there be for managers to state that we're in absolute free fall and that 40% of the current staff will be out of work or working elsewhere in 2 years? While that may be true, statements like that would make morale even worse and cut productivity. I can't imagine any real leader saying, "Hold on. We're screwed." Even in situations where that is the case. Since we don't have a lot of solid leaders in the company, maybe that is what's next.
ReplyDeleteIt sounds as though they are at least taking care to fund the retirement plan. Do any business reporters know how likely it is that our plan could disappear altogether? Does the company have to fail for this to happen ... or is there a legal way for the company to take what it has already promised?
ReplyDelete