[Updated at 3:04 p.m. ET.] Nashville Tennessean Publisher Carol Hudler, who also is president of the regional South Group of newspapers, told employees the following in an early-afternoon e-mail, according to two of my readers:
"Many of you have been wondering if we will be asked to take another furlough in the 2nd Quarter. Most of our employees will not. Our top executives and a few others in higher paid positions will be asked to take a furlough. Those staffers will be notified by their department heads by the end of the day today."
The furloughs come only a week after Gannett disclosed top executives got huge pay raises last year. Chairman and CEO Craig Dubow's doubled to $9.4 million, in part for cutting costs through furloughs and other austerity measures.
From my earlier post: Amid a further slide in revenue, Corporate is mandating another round of unpaid furloughs for some newspaper employees in western and midwestern markets during the second quarter, which begins Friday. That is according to readers I know, who e-mailed me over the past 12 hours.
There are signs that South Group papers might also furlough employees; but I have few details. I've heard nothing about the East Group of dailies, nor about GCI's other big division, broadcasting; its financial position has been stronger than the newspaper groups', however. (Breakdown of newspapers by group.)
I assume any furloughs will be for one week's duration; that's been the case in all but one of the four furloughs GCI has required since the first, during the first quarter of 2009.
Yesterday, at least two West Group dailies were notifying individual employees getting furloughed -- suggesting this round will be more "targeted,'' rather than across all the U.S. papers.
Only well-paid staff?
I got conflicting reports about higher-wage employees being the only ones targeted. One West Group reader said they understood only those making more than $80,000 would be furloughed.
But another reader from that group told a different story: "Judging from personal experience, the furloughs are not limited to people making $80,000 or more, although there is a certain income level below which people will not be affected."
There's a precedent for furloughs based on income. During the second-quarter furlough of 2009, employees making $90,000 and above were told to take two unpaid weeks off; everyone else got one.
That spurred additional unhappiness when some people discovered they were making less than co-workers in the same or substantially similar jobs.
Bad timing
This fifth furlough round comes as GCI's revenue continues falling, even from the already low levels set during the Great Recession. Last week, COO Gracia Martore warned investors that publishing revenue would be down 6% to 7% in the current quarter, worse than the 4.7% decline in the fourth quarter.
The timing of any furloughs will be awkward. Last Thursday, Corporate disclosed that the company's highest paid employees got big raises last year. Indeed, Martore and CEO Craig Dubow saw their pay double. She got $8.2 million; he got $9.4 million.
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| Hudler |
The furloughs come only a week after Gannett disclosed top executives got huge pay raises last year. Chairman and CEO Craig Dubow's doubled to $9.4 million, in part for cutting costs through furloughs and other austerity measures.
From my earlier post: Amid a further slide in revenue, Corporate is mandating another round of unpaid furloughs for some newspaper employees in western and midwestern markets during the second quarter, which begins Friday. That is according to readers I know, who e-mailed me over the past 12 hours.
There are signs that South Group papers might also furlough employees; but I have few details. I've heard nothing about the East Group of dailies, nor about GCI's other big division, broadcasting; its financial position has been stronger than the newspaper groups', however. (Breakdown of newspapers by group.)
I assume any furloughs will be for one week's duration; that's been the case in all but one of the four furloughs GCI has required since the first, during the first quarter of 2009.
Yesterday, at least two West Group dailies were notifying individual employees getting furloughed -- suggesting this round will be more "targeted,'' rather than across all the U.S. papers.
Only well-paid staff?
I got conflicting reports about higher-wage employees being the only ones targeted. One West Group reader said they understood only those making more than $80,000 would be furloughed.
But another reader from that group told a different story: "Judging from personal experience, the furloughs are not limited to people making $80,000 or more, although there is a certain income level below which people will not be affected."
There's a precedent for furloughs based on income. During the second-quarter furlough of 2009, employees making $90,000 and above were told to take two unpaid weeks off; everyone else got one.
That spurred additional unhappiness when some people discovered they were making less than co-workers in the same or substantially similar jobs.
Bad timing
This fifth furlough round comes as GCI's revenue continues falling, even from the already low levels set during the Great Recession. Last week, COO Gracia Martore warned investors that publishing revenue would be down 6% to 7% in the current quarter, worse than the 4.7% decline in the fourth quarter.
The timing of any furloughs will be awkward. Last Thursday, Corporate disclosed that the company's highest paid employees got big raises last year. Indeed, Martore and CEO Craig Dubow saw their pay double. She got $8.2 million; he got $9.4 million.
So, will Gannett actually let its employees know what the hell is going on? Or does it just plan on telling the folks who have to furlough that they've been picked ... and leaving everyone else to wonder whether or not they're on the list.
ReplyDeleteAlso, Jim, are you hearing anything about more aggressive layoffs? Could Gannett be skipping furloughs for lower paid employees because they're looking to save more money by simply eliminating jobs?
If you are looking for evidence of the problems with central planning in this company, this is it. We have the Kremlin in McLean dictating across-the-board policies that the local Soviets have to carry out. The problem is that all local Soviets are not equal, and the impact varies from site to site. Famously, this central planning didn't work in the Soviet Union, and won't work for us.
ReplyDeleteHas anyone heard Clipper's name mentioned in furlough talks?
ReplyDeleteGannett's second quarter began Monday. The furloughs apply across the newspaper division for high earners.
ReplyDeleteIt can be an eye-opener to find out who those $90,000 plus people are. Some do considerably less work than the rest of the editorial staff, and in some cases it's simply not as good. What's been really amazing is that they've survived the cuts while some of the best people were laid off.
ReplyDeleteIf corporate wants to cut the fat, there are salaries in the newspaper division that could stand trimming if you base salary on quality and quantity of work.
How does Gannett compare to the other big newspaper conglomerates in terms of furloughs and layoffs?
ReplyDeleteIn 2009, everyone got two weeks of furlough but a few of us (publishers, OC members making $90k and up) got an extra week on top of the two. I bet Bob has directed group presidents to determine what constitues a "high wage" at each site (not the same as it was in 2009 after RIFs, resignations and vacant positions) and directed local management to do the dirty work. It's likely $75k to $80k earners at metros and large communities; $40k to $50k at the small communities.
ReplyDeleteI can't recall ever seeing any information about Clipper on this blog. How are they doing? Are they subject to all of the furloughs and layoffs?
ReplyDeleteNot sure how they doing but they had to take part in Qt furloughs.
ReplyDeleteNo Furloughs in Nashville..just got the word.
ReplyDeleteIf the $80,000 a year cutoff is correct for furloughs, there are Gannett papers at which no one would be furloughed but the publisher.
ReplyDeleteWhen I was with Gannett, that was the case, sadly, at a number of the smaller papers...
....and the rich get richer, while we get "new responsibilities", no O/T and a stress headache.
ReplyDelete11:24 Clipper is not doing well. The magazine is direct mailed to 50,000 well-heeled homes (no renters), but this happens to be a category of homeowners who no longer are able to use their home as ATM machines for purchases or other shopping.
ReplyDelete11:39, did you hear any word on the rest of the South group?
ReplyDeleteHow can you tell when a high-paid employee is on furlough? At our paper, they spend most of the day locked away in "important" meetings. At least that's what they tell us. For all we know, they've sneaked out the back door and are at the golf course or some watering hole........
ReplyDelete12:53 That was not mentioned.. sorry
ReplyDelete10:57, I'm at one of McClatchy's bigger papers and our fun started in June almost three years ago. We've had seven rounds of layoffs/buyouts, two week-long furloughs for everyone and one pay cut based on salary.
ReplyDelete10:57 Furloughs are being used by companies, governments , universities, etc. USAT did an article awhile back, citing the following had furloughs:
ReplyDeleteWinnebago/State of CA/University AZ/Pella/City of Atlanta/NYTimes, etc
http://www.usatoday.com/money/economy/employment/2009-03-04-furloughs-workers-companies_N.htm
Clipper does mail to renters (12:33). They just started a groupon type business within their magazines with on page ads that direct the reader to a site to buy the certificates. The site is doubletakedeals.com They did have to take a 1st qtr furlough. One thing about them is that they try to stay up with the times unlike the newspaper business
ReplyDeleteI (voluntarily, not laid off) left the big G in mid-2008 after a 20+ year career in the newsroom of 3 different Gannett papers. Went into corporate communications in a different industry. Bigger paycheck, more control over work decisions and less stress. In retrospect, best (and luckiest) move I ever made. But I still feel for those left behind ... like rowing away on a lifeboat while I watch the Titanic slip below the water and the stacks blow. Hey, is that a frozen Al Neuharth I just saw floating by?
ReplyDeleteOur editor in a Southern daily told news staff today there will be minimal furloughs this quarter and reporters won't be among them.
ReplyDeleteHey 8:37, can you tell us which Southern daily?
ReplyDeleteOur Southern daily announced only the OC and publisher will be effected by the furloughs this go round.
ReplyDeleteFurloughs based on salary breaches privacy rights as it gives people an idea of what others make. USAT did something like this a couple years ago. People at a certain salary range had to take a 3rd week of furlough. It was extremely awkward as I was one who had to take a 3rd week, basically advertising I made more than X amount. It's a horrible practice and creates jealousy and animosity among peers who otherwise thought maybe their peers made less than them only to find out they make more, etc.
ReplyDelete6:06 I just looked at Clipper's Web site, and they say they don't mail to renters:
ReplyDelete"Targeting
Clipper Magazine mails to 50,000 homes in each market, in carefully researched and selected zip codes. The selections are based on household income and carrier routes, with preference to routes that primarily feature home owners rather than renters."
They chose to put the downplaying renters clause in there. I have never understood this because people living in high income zip codes generally have high incomes, renting or buying.
P.S. Isn't it a little late for Clipper to do a Groupon business? There are now a whole bunch of groups into the Groupon business, plus Slick Deal Web sites, etc that keep up with them.
ReplyDelete1. Once again we were correct on the furloughs. Look out for salary cuts and bigger layoffs next month.
ReplyDelete2. Pointroll is in terrible shape and the new CDO is most likely going to change the management team there. Seems like Gracia never got the team any paper work for their iPlan program and David Payne has decided to rehire a new management team.
3. Battle lines are being drawn between the new CMO, the new CDO and the divisional Presidents. Many closed door meetings.
4. Dubow is announcing his retirement end of Q2.
Dubow retiring....I suppose that's a good thing. Depends on who takes over.
ReplyDeleteDoes anyone have an idea where the layoffs will be? I'd assume the community papers. I thought at one time that in Westchester there wasn't much more to cut, but that was proven wrong. So I guess there's still more room for cuts. Maybe more of the higher salary types will go this time.
Prediction: There's going to be blood spilled over Dubow's replacement now revenue is collapsing.
ReplyDeleteI heard rumors of the salary cuts. It looks like corporate is following the theme book set out by McClatchy, which first went through the layoff-furlough phase before imposing salary cuts. Expect to pick up more of your health bill, too.
ReplyDeleteDubow will blame his back injury for his departure. Martore the knife can't be much worse. Good thing the both got the big bucks last year to tide them over.
ReplyDeleteWhy don't they just cut workers instead of bleeding everyone dry? Clueless and heartless.
10:15
ReplyDeleteNot so at my MNI site. We had paycuts before furloughs / layoffs.
Thanks for the update, My Boss. And good to hear from you again.
ReplyDeleteOoo, I just love it when My Boss swings by. Come on over to my place for a cocktail or two.
ReplyDeleteIs this the real My Boss? The sentence structure and references are markedly different (i.e., Gracia instead of Ms. Martore, etc.)
ReplyDeleteAlso, the self-congratulations don't ring true of past attitudes.
Can you tell, Jim?
- Just an old reporter askin'
10;15 Maybe no cuts at your site, but there were salary cuts at many McClatchy sites in 2009:
ReplyDeletehttp://cancelthebee.blogspot.com/2009/03/mcclatchy-layoff-update.html
Thank you, My Boss.
ReplyDeleteI'm not surprised about Dubow. But, he'll probably be asked to join the Board, so we wouldn't be entirely rid of him.
Unless the new CDO or CMO move fast, I'll bet Ms. Martore will be tapped for Dubow's job.
Too bad.
Let's see, the doubling of Dubow's salary ($4.7 million X 2 = $9.4 million). The difference divided by the apparent furlough compensation level ($4.7 million/$80,000) = nearly 60 salaries. Better yet, divided by the week's worth of salaries saved by furloughs ($4.7 million/$1,500) = you do the math.
ReplyDeleteFurloughs mean I don't have to awkwardly ask for time off to go to job interviews.
ReplyDeleteCarol announced the plan mid week and our site which is under her doesn't let their staff know until Friday.
ReplyDeleteIf they save an average of $1500 per person x 10 people per site for 80 sites that is only 1.2 million - someone needs to give bonus money back.
The Clipper posts are not really on target...we do mail to certain zips with renters and try to avoid saturation of zips with locked mailboxes ..... we have had to be involved in furloughs and hope like everyone we can stop them by increasing profit. At our division everyone received furloughs at every level and we are using sites like Double Take Deals to increase revenue...the person noting it took us time to launch it should note that we have added many products with a decrease in rep numbers making it a small team trying to make the Gannett family profits! We are working diligently to increase revenue .....
ReplyDeleteThere are papers doing well ....using online and niche publications....time to change guys...!