Layoffs | To plan ahead, a Gannett Blog FAQ

Gannett Blog recorded 31,000 visits Dec. 3, the peak of the last big job reduction; click on graphic for bigger view. This fever line reflects the fact cuts occurred before and after the planned layoff date. The same could occur in one week -- if current speculation is true.

Here are some questions, and the best available answers, on a plan to cut newspaper division employment by about 1,400 jobs. It appeared earlier, before an announcement July 1, which may explain some inconsistencies with current circumstances.

Q. When are the rumored job cuts taking place?
A. July 8 -- one week from tomorrow.

Q. But what about the recent report about July 15?
A. That is when Gannett Co. announces second-quarter financial results, and discusses the outlook for the near term. It's likely Chief Financial Officer Gracia Martore will give Wall Street analysts updated figures on any layoffs that have occurred by then.

Q. Will everyone get notified on July 8?
A. Very unlikely. The December layoffs were to occur on Dec. 3. But they began several days before, and lasted several days after, because some publishers were out of town, and wanted to be on-site when workers got notified. The pattern resembled a bell curve, as the Gannett Blog traffic graphic, above, reflects.

Q. How should I prepare, just in case?
A. Slow down spending. Delay all major decisions. Start looking online for jobs. (That's what I did before leaving USA Today. It's a very sobering exercise.)

A. Got any more advice about preparing for the job market?
Start collecting copies of items (e-mail, work samples, for example) you'll want when you start job-hunting. Should you get called into an office to be notified, your computer access will likely be cut immediately, and you may not be able to return to your desk unescorted. Gannett Blog readers have suggested forwarding copies of critical e-mail to a personal e-mail account. I use Gmail. But Yahoo, MSN and other such free services work just as well.

Also, if you're a blogger, print copies of your best posts. I didn't do that, and found too late that USA Today had deep-sized my small-business blog. (Grrrrr!) If you're not a blogger, start now. Blogging is good for everyone, not just editorial, because it forces you into the online world. There are plenty of free blog publishing platforms. I use Google's Blogger. But there's Twitter, TypePad, WordPress and others. If you've got teen-agers nearby, ask for help.

Q. What about online job-hunting resources?
A. Join LinkedIn and Facebook. The latter isn't just for college students anymore. I use it daily.

Q. How about medical benefits?
A. This is going to be the biggest challenge of all. My impression from the December layoffs: Hewitt Associates was overwhelmed with requests. Calls went unanswered, or did not get returned for days. You will need to be merciless in keeping on this. And that was when Corporate was "only'' cutting 2,500 or so jobs. This time, the number could hit 4,500 or more. Consider asking a family member of friend to stay by the phone 24/7 if necessary.

Q. 4,500?!
A. That's just one estimate for U.S. Community Publishing, the domestic newspaper division, which employs somewhere around 30,000 of Gannett's global workforce of 41,500 at the end of 2008. (See, inset graphic, above.)

In fact, however, I suspect Corporate is aiming at a financial target. For example, say those 4,500 each cost an average $75,000 in wages, medical and other benefits. (Remember: some worksites, such as USA Today, The Arizona Republic and The Indianapolis Star, have legacy payrolls that are much more costly than, say, the smaller community papers.) Multiply that times 4,500 and you get a savings goal of $338 million.

Q. And pension/401(k) payouts?
A. Corporate will be equally challenged here. The second you learn you've been laid off, immediately complete the paperwork Gannett gives you during your notification meeting. Your retirement assets should be tapped only as a last resort -- say, to avoid foreclosure on your home, or to keep your children in school. Some employees complained that it took months to get their rollover checks.

Frankly, I'd like to know how the pension plan can afford to pay 4,500 lump-sum payouts to roll into IRAs or other company plans. Those must be in cash, I believe. (Anyone know the answer?)

Other questions? Better answers? 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 rail, upper right.

[Graphic: top, Google Analytics]; inset, Gannett's worldwide employment, with annual change, U.S. Securities and Exchange Commission Forms 10-K]