Perhaps that day is here, given the strange way Corporate is reportedly forcing USAT to trim its workforce amid the big company-wide newspaper layoff next week. Top editor Ken Paulson told a newsroom staff meeting that Corporate has insisted he lay off 20 employees from the 450-person newsroom.In what sounds like a heartless decision, Corporate would not consider other avenues to reach targeted savings; 20 employees would be forced to walk the plank before their colleagues. And those are just the newsroom's layoffs, at a paper with perhaps 1,500 employees. Still to be heard from: circulation, production, ad services and other departments.
Now, a cynic might conclude the Gannett Tower is putting the fear of Corporate into a paper that historically behaved like it's not part of the bigger Gannett company. Compared to the smaller papers out in the field, USA Today staffers have it easy: Full-service on-site cafeteria and gym. Modern, well-lit offices with proper work spaces. Fairly up-to-date laptops and other technologies. Acres of convenient (and covered!) parking.
Plus, it's not unusual for USA Today reporters and editors to pull down annual pay of $100,000 and up -- more than double and triple what smaller papers pay. (On the pay question, factor in the cost of living in northern Virginia and places like San Francisco, where I worked. A small, three-bedroom house around the corner from where we live just hit the market for nearly $1 million. It needs a lot of work, but I bet the sellers get it.)
'Uppity USAT folks'
Some Gannett Blog readers left Monday's staff meeting, suspicious about Corporate's motives. The executives who made this call "are about as cold as they come,'' Anonymous@9:40 a.m. said in a comment.
Sounding unconvinced, Anonymous@11:26 a.m. asked skeptically: "Do you think it's a Corporate beatdown to teach uppity USAT folks who's boss?"
Yes, indeed, said Anonymous@3:59 p.m.: "There is someone at the top, maybe in Corporate, who sees us as numbers rather than people."
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.
[Image: today's front page, Newseum]
I have long contended that it is unfair for the community papers to bear the costs of running this company, and it is time USAT is brought into the corporate structure. Revenues have declined at USAT as they have at all GCI properties (TV included), and so they should bear their share. The community papers cannot long stand these sort of cuts while USAT bigwigs flit around the globe on all-expenses paid junkets, or spend lavish sums covering political campaigns. The community papers produce most of the revenues for GCI, and should be more appreciated. They should not be repeatedly raped to pay for USAT health clubs, free parking, subsidized cafeterias, and overscale salaries.
ReplyDeleteUSAT has had it too good for too long.
ReplyDeleteI live in NoVa, and nobody here HAS to make $100,000 to survive. You don't have to have an expensive house in McLean or North Arlington. You can find pretty decent homes for $300,000 to $400,000 now in Fairfax County.
ReplyDeleteSo anyone who tries to justify a six-figure salary with "but it's expensive here!" is full of hooey.
Some of you are so full of crap...you have this complex about USA TODAY. I can assure you there is alot going on and UT will share in the pain in the coming days.
ReplyDeleteI believe this concept of thinking USA TODAY has an "elitist" attitude or has "raped" the profits of the locals is 1) an inferiority complex 2) jeolousy or 3) immaturity.
I know of several people working for a modest salary with increases of only 2.5%...and these wages do not compare to the market range in NOVA. What has kept people at UT is a good product, good people, and good managment....agree or not...that's a fact. Many people have a sense of pride for the paper and care about the future. Sure, it is sometimes politcal and terriorial, but welcome to the real world.
Let me remind you that National Advertising is doing better than Local Advertising. Let me remind you that Circulation at UT has remained flat over the years.. even increased. What an accomplishment! Let me remind you that the Brand does a nice job of giving a face to Gannett Nationally and Globally. We all produce profits for Gannett and are a part of the family. For years the locals prospered. Thank you! But be thankful USA TODAY is part of the family and get over our differences. We each help each other.
6:49 National ads were down 14 percent in October, and are off for the entire year. Given the troubles of Detroit, this comes as no surprise. As for circulation, we all know how easily these figures are manipulated. Since hotel companies are complaining ccupancy is really down, circulation and readership of USAT has to be down, too.
ReplyDeleteYou say that USAT is part of the GCI family. But you are the pampered son in this family, given all the treats and benefits, and none of the chores others of us have to do. You have delighted in making clear there are some favored members of this family, and some not so favored. Even in this current round of cuts, there is unfairness in USAT having only to shoulder a 5 percent cut, while the rest of us have to take 10 percent in layoffs/buyouts.
Could USAT stand on its own without production being underwritten by the GCI sites that are being slashed to the bone as we speak? Not on your life.
ReplyDeleteTo argue otherwise is intellectually dishonest, unless you have access to secret Gannett financial data that the rest of us don't.
Look, we all see the long-term game plan: USAT becomes the lead Web-based publication and the community papers go into that good night. Well, we aren't just going to be evaporated without a fight. Look at the financials, and you will see the 85 community papers provide more than 70 percent of the revenues GCI currently gets. Since the community papers are providing the lion's share of the cash, it is proper that USAT take its part of the bite Corporate wants to take.
ReplyDeleteHey 6:19: I'd like to see just what kind of house you can get in Fairfax for $300,00-400,000. You couldn't even get a townhouse for that these days. I lived there more than 10 years ago and it was that bad then so I'm sure it's worse now.
ReplyDeleteHey 8:02: there are plenty of non-Gannett sites printing USA TODAY and they don't offer discounts. Plus, you'd better check your facts before you say USA TODAY printing is subsidized because it is not.
Oh, and that nice gym and cafe at corporate isn't there just for USA TODAY employees; everyone from Gannett has access. And for your information, over half of the USA TODAY employees work someplace other than Tyson's. There are a lot more than Tyson's editorial people working at USA TODAY even though this blog seems to only cater to editorial staffers..
8:41 I just did a search on a North Virginia realtor's site for houses under $400,000 in Fairfax County, and I got 770 returns. So enough of this garbage of high prices in the Washington area. Sure, if you want to live in Great Falls next to Craig Dubow, you will need $2 million. But there are nice subdivisions out there where the price is affordable.
ReplyDelete8:41 And on the same real estate site, I got 270 houses for sale under $300,000 in Fairfax County. There were 170 under $200,000 in that county.
ReplyDeleteSee what $500k buys you in Appleton.
ReplyDeleteYou hosers on the coasts can keep your crappy lifestyles, us hick cheeseheads done got it good.
http://tinyurl.com/6qo4fg
(granted, my house was well under $80,000, but I'm cheap)
Here's $500,000 on a one-acre lot about two miles from USAT. I suspect it is going for that much because of the size of the lot:
ReplyDeletehttp://www.franklymls.com/FX6872372
Here is one of Dubow's neighbors:
ReplyDeletehttp://franklymls.com/FX6790005
(His house is not so nice, and not on 12 acres like this one.)
This thread continues the big lie that USAT production is subsidized at Gannett presses. No one offers a shred of evidence because it's not true. USAT pays market rates for that service.
ReplyDeleteI gave evidence yesterday that USAT is published on the presses of Army Times.
ReplyDeleteFact is, no one explained to us at USAT why these layoffs are happening. Ken talked about the economy, but offered no hard data that pertained to USAT being in jeopardy. We are still very profitable, much more than the locals. You can't blame the economy for everything without showing some tangible proof. We do have a lot of waste and some perks, but those weren't considered areas to cut so that jobs would be saved, which actually raises more suspicion and anger. Why that is the case was not explained at Monday's meeting. Why we are wasting $2 million on an international edition was not discussed in length. So speculation is running pretty high that these cuts are not really financially necessary and are either some sort of sacrifice to the Corporate gods, or just another way of opening up more online hires. Neither of those reasons would sit real well with anyone in the newsroom, probably not even online folks since the more print people who leave, the more likely online staffers are going to have to help prop up the paper. Yet, those are the only two realistic reasons for these cuts that we see at this time. This might be only 5 percent of the newsroom, but this is going to do untold damage to the spirit of this newsroom if we don't get a better explanation for this bloodbath real soon. The economy is not the main reason for these layoffs...not at USA TODAY, not after losing over 40 very good people just a year ago. We see the job postings, and they are all for online slots. My guess is that innocent people are going to be lost so that some more techies can be hired. If the paper was losing money and about to bite the dust, I can live with that business reality. But that is simply not the case. We still need people to put out a decent print product that is the brand most people know and respect.
ReplyDeleteI don't think this is a battle between the flagship and the community papers, although some are choosing to rage on about that. This is a cancer within the halls of the the towers and needs to be exposed for what it is and not swept away by time or the baloney we got from Ken and the MEs in Monday's meeting.
Whoever or whatever is behind these layoffs has just a few days to reconsider. After this weekend, the damage will not be able to be reversed. Will those lurking in the shadows be able to sleep?
Do the right thing. Do it for many just reasons, including not bringing bad karma into your own lives. Reverse this decision. USAT is relatively healthy. These 20 jobs aren't going to bust the paper, but are going to hurt countless people connected to the folks in those jobs.
This company needs to show it has a heart. You will get much more production, great ideas and creativity from employees who feel we work for a sensitive company willing to reverse or somehow ease layoffs. If you take a hard line, show no pity, then this downward trend will continue for Gannett and in the lives of those who run it.
One more thing, I ask some of the powerful people to take a look at their lives. Do you want your sons and daughters treated this way? Is this the way you want them to see the world? Do you think that by treating your employees this way that you are doing anything to better your own existence?
What goes around comes around. We are all connected.
10:34 Don't you think your "why us" plea is also being spoken in the ailes of the community papers? Most of the 85 papers are profitable, and I can only think of one or two that are not at this point. Yet everyone is facing cuts. You say, without citing any evidence that I can find, that USAT is profitable. There are no documents that show that. USAT's revenues are rolled in with the others when they are reported. Layoffs suck. They hurt both community papers and USAT. But there is nothing but howling at the moon that can be done now to stop them.
ReplyDeleteLook, whoever thinks that USAT is more profitable than papers in the newspaper division has no idea what they are talking about. In fact, USAT is not even the #1 newspaper in terms of revenue. Yes, Gannett does keep track; it just has never reported USAT separately because for the first 10-11 years, USAT lost, literally, over a billion.
ReplyDeleteThe truth is USAT is once again losing money and has been in the red for several months this year. Why doesn't one of the genius reporters from USAT ask Kenny about the real numbers?
Even during their most profitable years(in margin terms) USAT was far from the most profitable paper. Many Gannett papers had margins in the 30-40% range; USAT was never even half as profitable.
It used to be that you could say it wasn't that Gannett papers were losing money, just that they were not making as big a margin. That is no longer the case; the list of papers that are actually losing money grows each quarter.
8:52, a Jersey voice checking in here. Just because there are houses listed for $300,000 doesn't mean it's affordable. I have a ton of family in the DC area and like every urban area you need to know the area to know whether it's a place you'd be comfortable raising your family. Before you spout off, my mother was born and raised in Arlington, my mother's parents lived in Fairfax when I was little, my dad's parents lived in Silver Spring any my uncle and cousins currently live in Herndon and Chantilly. The Arlington my mother grew up in is not the same city today. The Fairfax my grandfather owned a home in 30 years ago is not one I am comfortable driving through.
ReplyDeleteYou can find "cheap" home listings anywhere you want, but that doesn't mean they're in a neighborhood where you really want to live. And 770 homes in Fairfax County is a drop in the bucket.
Regarding the comment of raises of "only" 2.5 percent: Be grateful you got that at USAT. Most of us were "lucky" to get 2 percent. I know of more than one person who got 1 percent or less.
6:19 here ... That's why I said "pretty decent homes" in the "$300,000 to $400,000" range. Under $300,000 and it might not be so great.
ReplyDeleteJust a few examples...
The Greenbriar neighborhood is quite nice:
http://franklymls.com/FX6919861
http://franklymls.com/FX6683810
The Fairfax Woods area is nice, too:
http://franklymls.com/FC6917100
http://franklymls.com/FC6923320
Really nice townhouses are about the same price, and decent townhomes are cheaper.
What I'm saying is, it's silly to boo-hoo over not making $100,000 just because you think you can't find a nice house for under $600,000. There are plenty of good options. And no boss is going to give somebody a big salary (or a big raise) just because you say you want to buy a $600,000 house.
I grew up in Arlington, and I can't afford even a townhouse there now (in a good 'hood, anyway). Instead of bitching and moaning about it, I bought a condo in Fairfax. After two years, I sold it and bought a townhouse there; my salary was $50,000, and home prices are back down to where they were when I bought it. I could have afforded something more expensive, but I didn't want to possibly end up in a situation where I'd lose my job and find another that paid less. Living below my means equals less stress.
Has anyone heard of anyone in the USAT newsroom who's going to take the voluntary layoff offer? I've only heard of one person and I don't think he's exactly who the company had in mind.
ReplyDelete2:41 am - take a look at the tax rate base on these homes. If it weren't for the current economic conditions in the marketplace these homes would all be over $400,000. And to top it off, these are all pretty darn small homes for that kind of price. I mean, a 4 bedroom house that is only 1500 square feet? My basement alone has that much finished space in Michigan and my house is right at the $400,000 mark with a lot more than .31 acres of land.
ReplyDeleteIt costs a lot to live in the Northern VA area. I've lived there and I can remember how poor I felt. You've apparently just grown numb or you aren't trying to raise a family. Who knows but I wouldn't want to live in the area again even if you doubled my salary and then some. But I guess some people like it.
9:28 pm said:
ReplyDeleteHere's $500,000 on a one-acre lot about two miles from USAT. I suspect it is going for that much because of the size of the lot:
http://www.franklymls.com/FX6872372
That's lovely. A 1400 sq. ft. house built in 1955 with a one-car garage for half a million. I wonder what that sucker cost a year ago?
TO: 9:45 pm
ReplyDeleteSo what that you "gave evidence" that USA TODAY is printed at the Army Times. I can "give evidence" that it is printed at the Detroit newspapers, Richmond IN, Newark OH and a number of other Gannett newspapers. That's no evidence that they are paying a lower price to print. Hell, it wouldn't surprise me to find out they pay more at these locations. They were overpaying in Fort Myers at one times for many years.
Go get some real evidence or shut your pie hole.
9:45 This is silly. You wanted any evidence that any USAT edition was subsidized by another GCI publication, and I gave you the Army Times. You now insist USAT is somehow paying these GCI papers to print. Ok, where is your evidence. Got any receipts? Of course you don't because they are not needed. From the foundation of USAT, it has been published and distributed by local newspapers, which carry the costs of these operations in their own budgets. The printed edition of USAT is not economically viable on its own. The only way it can be profitable is not considering the printing and distribution costs. It is a white elephant dragging down the economic future of this company. There would probably be no need for layoffs at the community papers were it not for these additional costs from this money-draining enterprise.
ReplyDeleteUSAT employees got 2.5 percent raises. CP employees got less than 1 percent. Now USAT employees are bitching because they are suffering under a 5 percent payroll cut, while CP employees are seeing 10 percent reductions. What is wrong with this picture?
ReplyDeleteI am also familiar with the Washington area, and if USAT employees are shopping at Tyson's Galleria, yes they are having their paychecks meet the prices at Saks and other exclusive stores there. The rest of us in this operation have Wal-Marts and Targets. Give me a break. If you stop buying your food at Dean and Delucas, or Balduccis, and used the local discount stores instead, the cost of living would be much more tolerable
My God, what a bunch of whiny, bickering children.
ReplyDeleteFor those complaining about the number of newsroom cuts at USAT, remember that editorial is not the only function at the paper, and that other departments are being hit as well. I'm a bit more satisfied that, in this round of cuts, everyone's being treated equally. Unlike last year's buyouts for edit, which were sweeter than the layoffs for other departments, everyone's now facing the same bare-bones reality, with the exception of the "early retirement" packages offered through Advertising.
As for this ridiculous "us-versus-them" debate of who's hurting more, all your arguments are hollow. Unless you can share some actual numbers to show that USAT leeches off the community papers, or that one is more profitable than the other, you'd be better served by saving the rant for your exit interview.
Hey 9:45....
ReplyDeleteUT is ptinted in over 30 print sites and many are contract sites(NON GANNETT owned sites). I can't speak of price, but I do know the Print costs are extensive and what UT pays would be a guess.
Common sense tells us that Printing UT in Gannett sites helps the GCI sites. It keeps the presses running and employs operators. This is a good thing! As for the rate, I don't have the facts, but I'm confident that whatever pricing charged is best for the Family...it's not at the expense of the local paper and makes sense for the company overall. We all know Gannett is about making money right?!
9:45 your comments are "off base" and until I read facts, they offer no value.
Adiitionally, to clarify: Nobody said, I or others weren't thankful of 2.5% raises. My point was other companies typically give higher raises in this area.
Secondly, as for the cost of living....most families need two incomes to have a middle class life style (unless you bought in the 80's or 90's) and it is a very expensive place to live. Taxes, Gas, commute / tolls, daycare, etc. It's crazy!
I don't know salaries, but I know the culture and I would be VERY surprised if there were many $100k salaries. Very surprised. Having said that, if you are in sales, a columnist, or are responsible for revenue, then I believe those jobs require special talents and are worth it. Just IMO.
Happy Thanksgiving to all!
9:06 - There are a LOT of families in NoVa who are raising their kids in 1,200 sq.ft. townhouses and "only" 1,500 sq.ft. homes. I promise you it's really not necessary to have an enormous house to have room to raise a family. It's nice, of course, but not necessary.
ReplyDeleteI guess the "problem" lies in the fact that when folks from other parts of the country move out of their nice, big homes to come to the D.C. area, they expect to be able to buy something equivalent. They soon realize they'll have to downsize, and they don't like it. That's understandable; you've gotten used to a certain way of living.
But what I'm saying is that it's not impossible to live here, with a salary under $100,000, in a townhome or small-ish house -- and raise a family in one. Anyone who doesn't like those options doesn't have to move here. I'm here because it's where I grew up and my family is here. And for as much of a pain in the butt that my job is, I'm lucky I have it because it pays pretty well in comparison to other similar jobs here.
-- 2:41/6:19
A reader sent the following to me in an e-mail; I'm posting the full text below, minus any identifying informatIon:
ReplyDeleteHappy Thanksgiving to everyone!
While it's fine to call out the salaries, let's keep in mind two things:
1. A USAT writer/editor gets paid a lot more than those at the smaller GCI newspapers because they should. They're at a national newspaper with the largest circulation in the country. They should be compensated somewhere in the ballpark of the WSJ or NYT or Wash Post talent, and I can assure you that the bulk of them are not. Any journo knows that you make less at a 30,000 circulation county paper than at a metro daily, and less at a metro daily than at the large national newspapers. That's why many aspire to leave small dailies and reach higher circulations.
2. As you indicated, let's not kid ourselves here: $100,000 these days is not your dad's $100,000. It's middle class. Maybe a bit more on the comfortable side of middle class. But it's middle class. And if the writer is the sole wage earner in a family with two or more kids? Then take 'comfortable' out of that equation. Keep in mind that anyone pulling that salary in newspapers most likely has to be in a large metro area, like DC, NYC, etc. so the cost of living is going to be a huge equalizer here.
Thanks for doing your blog!!!
Stop the layoffs now! Start finding other ways to save money. Ruining lives is not going to make this a more profitable company. It's not going to make the folks clinging to jobs for another year any more motivated. We can't go through this crap every year. It's not healthy for the company or individuals.
ReplyDeleteHey 9:37 am - you didn't give me jack but something everyone already knows and that's all you have. I can't tell you how I know because I don't want to reveal my identity, probably just like you. I can also tell you that the distribution side of this equation does in fact make money. Otherwise, why go to a buck a copy? You must not be able to do math.
ReplyDeleteBut really, you just want to bitch, whine and complain.
I didn't think I would ever find a glimmer of goodness in these layoffs, but maybe they will serve to end this imperious cock o' the walk attitude at USAT, and show that all gannetoids have to walk on the earth just like the others in the provinces. I have never read such pretentiousness. If you are so goddamn good, where are the prizes?
ReplyDeleteFWIW -- we heard talk a couple of weeks ago that USAT would lose 30. Not sure if that was inaccurate or if the number dropped.
ReplyDeleteAs for the cost of living -- everything's more expensive in NoVa. Not just the $380,000, 2,000-sq-ft townhomes next door to an apartment complex with Section 8 housing.
Now bear in mind that a lot of the newer employees here (particularly online) won't see six figures in their lifetimes. Not even close. Today, not even half. In some cases, not even close.
Fine when you're 25 and single. After that, well, dual incomes help.
Two things jump from this entire thread:
ReplyDelete1. Such a level of liberal envy
2. Wordsmiths do what wordsmiths do
There are a few "top of the foodchain" publications, and they are in New York, Washington, Chicago and even Northern Virginia. They attract the best talent (or so they claim) and the wages that go with it.
You're not one of them? It's not their "fault" that they are getting more money than you are, and it's not "on the back of the smaller papers".
Get over it, or get one of those six figure incomes on your own. There are still a lot of them out there, even within Gannett.
The rate at which people post to this blog is incredible. When you bend words for a living, it appears that it's a avocation as well.
The USAT newsroom layoffs are totally unjustified. As far as large papers go, we have always been understaffed. Yet we remain profitable and hold our circulation. Now they are cutting into our staff even more for reasons that are just plain evil.
ReplyDeleteEvery J school grad take note of what is happening at USA TODAY. The paper is being put to death by ownership. Send your resumes elsewhere if you would like a career in print. USA TODAY, once a vibrant and shining star, has been gutted for less than honorable or legitimate reasons. Morale is shot and their is no hope that we won't be going through more unjustified cuts in 2009 and beyond. Don't believe what Gannett says. This IS NOT about the bad economy. These layoffs are a crime of opportunity.
ReplyDeleteAt the risk of drawing the wrath of several on both sides of the staffing/layoffs/USAT "elite"/housing prices/large salaries; let me make a few points.
ReplyDelete1. Publicly held companies, Gannett included, are in business to make shareholders money. Usually, that means showing profit growth. That's not the case at Gannett, where profits are declining and will continue to through at least 2009. Like most companies in most industries, cost-cutting is a way to at least stem profit declines.
2. USAT may have lost good people last year, but let's face it, many of those who took the buyouts were ready to and were compensated handsomely. No one pushed them out the door. Even you, Mr. Hopkins. The choice was yours.
3. Losing an additonal 20 staffers will not hurt this paper. In fact, it may clear out some of the dead wood - particularly the unproductive, highly compensated kind - that have hurt morale and undercut fellow staffers for years. I know it sucks. I know its hard to rationalize. But all things being equal, the cuts should have been the same % as the Gannett papers. Workload? Shift it around and make more on-line people get actual reporting and writing experience, and make on-line training mandatory for print people.
4. Kill the international division. Losing $2 million a year? What's the justification? While its in the same ballpark as what CEO C.Dub pulls in, it's $2 million that could be applied elsewhere.
5. Closely examine the purpose and necessity of GNS.
6. EVERYONE: Stop the self-righteous indignation. Look at virtually every industry and see what's happening. Even government is cutting jobs.
Regarding housing costs, it is an indisputable fact that the cost of a new home in the Washington, D.C., area is double the national average. The median price of a new home in the area is $400,000, it was reported this week.
ReplyDeleteYes, kill the international edition. And close London. It would save $500,000 to shut down that bureau. We need China because of the trade and economic issues, but why do we need London? I, for one, am fed up with royalty stories. I can get that in lavish doses from PBS.
ReplyDeleteWe need London because that bureau pretty much covers everything from Moscow to the Atlantic Ocean. I for one don't want to see that go away.
ReplyDeleteNot every industry is cutting jobs. But lots of industries want you to believe that. Look, just watch TV. Companies are still selling products. Commercials still exist. Did you see the malls on Black Friday? In Europe, newspapers are actually doing well. And newspapers here, especially USA TODAY, aren't doing nearly as badly as some claim.
ReplyDeleteUSA TODAY is not at the point where it needs to layoff people. Plus, what are 20 newsroom salaries really going to do for the bottom line? These layoffs are a crime of opportunity. The economy is hurting, so they are taking advantage of that and also evening out a score or two. More about that later.
USA TODAY is also trying to open up more digital jobs, and the only way they will get approval for that is to cut other jobs. That's not right, nor is it good for anyone. Even if you primarily work online, you're going to have way more print responsibilities if you print coworkers leave. Not all jobs can be blended on both platforms, so someone is going to have to pick up the print slack left by staff reductions.
Radio didn't die. Newspaper won't die. Not sure why this company is trying to do in USAT, but we need to start using some journalistic skills to uncover the real reasons for these layoffs.