Today is an extremely difficult day. I know most of you are stunned, confused, worried and even angry. Some very good people lost their jobs today. It had nothing to do with their job performance. It had everything to do with an economy that continues to stagger our community and ultimately our newspaper.
You may recall that in company meetings last year, I said we had made some difficult cuts but had submitted a budget that would get us through 2009. But that carried one big "if." The budget would work if we could hit our reduced revenue targets. That hasn't happened. Despite the initial and continuing success of our new weekly Livingston Life sections, our revenue so far in 2009 is running 15-20% behind last year. And last year's revenue was a significant drop from the prior year.
How can this happen? The effects of Michigan's stagnant economy were worsened with the worldwide financial crisis last fall. People aren't building homes or buying them. They aren't buying cars. They aren't hiring employees. And that shows in our advertising . . . or lack of it. When Taorello's and Circuit City closed, we lost regular advertisers. When the Green Oak Village Place Mall cancels all advertising, we lose a steady advertiser. In-coming calls to our classified phone room have declined by as much as 30%. Although some auto dealers are still maintaining a good advertising schedule, other regular accounts have either pulled way back or cancelled scheduled ads. And there is virtually no real estate advertising to speak of.On pace to lose money in '09
Despite a number of spending reductions, we are now on pace to lose money in 2009. We can't do that. Today's layoffs are designed to make significant payroll savings while leaving us with a core group of employees to continue publishing a daily newspaper in Livingston County. You are aware that other newspapers have reduced their publication days and that is something we must also explore. But for now, our goals is the survive as a daily newspaper.
I know you have many questions about today's decisions as well as how we will function without so many key positions. Such concerns are natural. Out of consideration to the people who are learning today that their job is eliminated, I am going to slightly delay answering all of these questions. However, I will be conducting a company-wide meeting at 2 p.m. Wednesday in the Howell newsroom. I strongly urge you to attend. At that time I will tell you all that I can, answer your questions and together we will get started on securing the future of our newspaper.
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Jim, please! A little perspective is in order.
ReplyDeleteMichigan is not a reflection of the entire country. The state's economy has been contracting for almost ten years now. It's lost 400,000 manufacturing jobs in that span. 90,000 people moved away in 2007 alone. There's even a term for states that lose population when people leave and nobody new moves to it: "Michigration."
So before yoy say that this will happen everywhere, just keep in mind that Michigan is a tale of woe unto itself, mostly due to the auto industry and the businesses that support it.
That was a very humane memo. Delivered bad news in a clear and concise manner.
ReplyDeleteProbably a good leader at the helm.
A humane memo for sure. You wouldn't see Bill Albrect in St. Cloud doing such a thing. The "big" man slips out the side door hoping no one will see him to ask questions.
ReplyDeleteRich is a good guy
ReplyDelete