Employees at North Carolina's Asheville Citizen-Times were told yesterday that 12 of 47 newsroom jobs are being eliminated, according to a reader, who says certain staffers will be required to apply for some of the remaining positions. A Corporate representative is expected to help supervise these re-application interviews during meetings next Tuesday and Wednesday, my reader says.
The timetable for completing this reorganization is unclear.
Any layoffs would come as Gannett continues trimming costs through unannounced job reductions and other austerity measures at least across the U.S. newspaper division, the company's biggest and most financially challenged.
Higher-paid newspaper employees are taking one-week unpaid furloughs this quarter. At one of GCI's biggest worksites, The Arizona Republic, all employees on Tuesday were ordered to take off an unpaid week by July 30 -- a mid-quarter move that suggested a sudden deterioration in results.
"Top line revenues remain short of where they were a year ago," Publisher John Zidich told an estimated 1,500 workers in a memo. "While the longer term prospects for the Arizona economy appear to be improving the short term environment remains difficult."
GCI's first-quarter revenue fell 4% from a year ago, to $1.3 billion, amid an even steeper 7% decline in newspaper advertising revenue. Net income plunged 23%, to $90.5 million, the company said last month.
The Citizen-Times' circulation Monday-Friday is 32,962; Sunday is 49,537, according to ABC data for March 31.
So far this quarter, Gannett Bloggers have reported that 36 jobs have been eliminated at six sites. (Spreadsheet gives site-by-site figures.)
GCI employs about 32,600 worldwide; 22,400 of those were in the U.S. Community Publishing newspaper division as of Dec. 31, the most recent figures available. Last year, that division's employment fell 9.3%, when GCI's overall employment fell a smaller 7%.
[Image: yesterday's paper, Newseum]
Higher-paid newspaper employees are taking one-week unpaid furloughs this quarter. At one of GCI's biggest worksites, The Arizona Republic, all employees on Tuesday were ordered to take off an unpaid week by July 30 -- a mid-quarter move that suggested a sudden deterioration in results.
"Top line revenues remain short of where they were a year ago," Publisher John Zidich told an estimated 1,500 workers in a memo. "While the longer term prospects for the Arizona economy appear to be improving the short term environment remains difficult."
GCI's first-quarter revenue fell 4% from a year ago, to $1.3 billion, amid an even steeper 7% decline in newspaper advertising revenue. Net income plunged 23%, to $90.5 million, the company said last month.
The Citizen-Times' circulation Monday-Friday is 32,962; Sunday is 49,537, according to ABC data for March 31.
So far this quarter, Gannett Bloggers have reported that 36 jobs have been eliminated at six sites. (Spreadsheet gives site-by-site figures.)
GCI employs about 32,600 worldwide; 22,400 of those were in the U.S. Community Publishing newspaper division as of Dec. 31, the most recent figures available. Last year, that division's employment fell 9.3%, when GCI's overall employment fell a smaller 7%.
[Image: yesterday's paper, Newseum]
The same thing is happening at the Fort Collins Coloradoan on Friday, May 13. Word has it, that there are 12 people be let go. That's all of the graphics people.
ReplyDeleteOne question. In these situations where people are being asked to re-apply for jobs, is there an option to choose not to re-apply and receive unemployment. Or is it considered quitting if you don't re-apply?
ReplyDeleteWow. That would be a 25% cut in newsroom staff. That's pretty drastic considering the cuts we've already seen.
ReplyDeleteYes, there is an option to not reapply. That person would be considered laid off, not quit, and would be eligible for unemployment benefits, etc.
ReplyDeleteMaybe someone should look at the ad or circ staff at the ACT instead of the newsroom. There is some trimming to be done there.
ReplyDeleteGannett: Where double-digit profit margins aren't enough.
ReplyDeleteMy oh my... cutting back again on those what brung ya' to the dance. Ha
ReplyDeleteVery sad.
Of course, they talk the "short term" talk, almost with matter-of-fact pride. In fact, NO company is ever successful by cutting expenses as a way of maintaining or increasing profit.
The successful newspaper would be the one that INCREASED staffing, INCREASED newshole and DECREASED ad rates and subscription costs to attract more readers and advertisers.
That newspaper operation (with online support and a paywall) may not have double-digit profit margin in the short term, but in the long term, THAT newspaper operation will succeed and grow circulation because the customers will have a product in which the owners themselves have confidence -- in the long haul.
People in these Gannett communities aren't stupid... they know a dinosaur kealing over in a last gasp when they see one...
Short-term layoffs and newshole reductions... all spell disaster. But wait, what does Gannett care?
These painful layoffs will go on and on until Gannett squeezes every penny out of the old print ad model, which still generates plenty of revenue. Newspaper companies are not in the business of innovating digitally; they're in the business of making money the best way they know how. And that's print. Until it's no more.
ReplyDelete10:38 ID'ing someone in a small newsroom or other department by their initials or any other very specific way is the same as calling them out by their full name. Please don't do that.
ReplyDeleteWhich jobs? Any more details? Or is another make it up as we go along move?
ReplyDelete12:47- Can you clarify. I worked there 20+ years ago. At the time they had 1 graphics person in the newsroom.
ReplyDeleteAnd I think photo is safe.
ReplyDeletePretty much everyone's job, except for some editors and columnists, is up for grabs.
ReplyDeleteI'm not sure what all these negative comments are all about. How can Gracia and Craig double their pay next year without these layoffs? You forget it is about them and not us. How inconsiderate of you!
ReplyDeletespeaking for fort collins, does anyone know the story on Kim W leaving?
ReplyDeleteThese painful layoffs will go on and on until Gannett squeezes every penny out of the old print ad model, which still generates plenty of revenue. Newspaper companies are not in the business of innovating digitally; they're in the business of making money the best way they know how. And that's print. Until it's no more.
ReplyDelete5/12/2011 10:31 AM
You are exactly right....that is hitting the proverbial "nail on the head"
Can't they just print money?
ReplyDeleteSo very right. Compare Gannet with companies in other industries that fell on hard times. GM restructured and focused on making better products that match the market rather than continuing to try to squeeze money out of high-profit but ridiculous SUVs. Apple came back from near death by making what people wanted and making sure its products work well. There are other factors in both cases and neither is a perfect analogy but the point is these companies sought to improve their core business. Gannett is destroying the only thing it has to sell, which is local content. You'd think sooner or later some major institutional shareholders would wake up. But I guess they don't care about long-term either; they just want their portfolios to look good quarter to quarter. What an f-ed up economy.
ReplyDeleteThe other sad thing is, those who have to reapply for their jobs end up going through sham interviews. They already know who they want to keep.
ReplyDeleteWhen Westchester went through it in '09, they made everyone reapply. Everyone dressed their best, then went in and met a Gannett HR person, who didn't have the power to hire. They were just there to ask prepared questions and type in answers. The HR person didn't have a clue about how my job was like, and kept trying to get me to answer the question like it was prepared, even though it didn't fit.
It was ridiculous, and a total waste of time.
Just looking at the ACT circ. numbers from March vs Sept there is a lost of approx. 2600 subscribers on the Sunday side. Also when you go on their web-site it states their Sunday circ. is 71,030 March numbers are 49,537. I think they may want to update their numbers but then they are probably telling their customers the numbers that are on the site are correct.
ReplyDeletethere was also two in finance laid off at ACT yesterday
ReplyDeleteAs for Kim W. at Fort Collins. No one seems to know why still. But funny thing is, she refused to turn in her”company provided car”. It had to be towed from her home 6 weeks after she left. It was taken back to the Coloradoan parking lot.
ReplyDeleteI am sure they are lying about their real circulation because if the truth were know, they would lose millions company-wide in preprint and insert revenue that is based on a distribution number.
ReplyDeleteCompanies such as Wal-Mart, RedPlum (glossy coupons) and Home Depot are growing more and more skeptical of these phantom circulation numbers.
Remember that New Jersey publisher who had tucked away thousands of undistributed inserts on his boat?? hahahahaha
Companies who put their preprints and inserts in their papers are starting to demand the truth... and in this case the truth is REALLY going to hurt Gannett.
I can't wait.
This comment has been removed by a blog administrator.
ReplyDeleteUnfortunately, it appears the many reader comments originally posted to this item were lost during Blogger's outage over the past 24 hours. I'm trying to find a way to recover them.
ReplyDeleteThose missing comments include the following:
ReplyDeleteThe same thing is happening at the Fort Collins Coloradoan on Friday, May 13. Word has it, that there are 12 people be let go. That's all of the graphics people.
Posted by Anonymous to Gannett Blog at 5/12/2011 12:47 AM
One question. In these situations where people are being asked to re-apply for jobs, is there an option to choose not to re-apply and receive unemployment. Or is it considered quitting if you don't re-apply?
Posted by Anonymous to Gannett Blog at 5/12/2011 3:01 AM
Wow. That would be a 25% cut in newsroom staff. That's pretty drastic considering the cuts we've already seen.
Posted by Anonymous to Gannett Blog at 5/12/2011 3:07 AM
Yes, there is an option to not reapply. That person would be considered laid off, not quit, and would be eligible for unemployment benefits, etc.
Posted by Anonymous to Gannett Blog at 5/12/2011 7:52 AM
Maybe someone should look at the ad or circ staff at the ACT instead of the newsroom. There is some trimming to be done there.
Posted by Anonymous to Gannett Blog at 5/12/2011 9:58 AM
Gannett: Where double-digit profit margins aren't enough.
Posted by Anonymous to Gannett Blog at 5/12/2011 10:07 AM
My oh my... cutting back again on those what brung ya' to the dance. Ha
Very sad.
Of course, they talk the "short term" talk, almost with matter-of-fact pride. In fact, NO company is ever successful by cutting expenses as a way of maintaining or increasing profit.
The successful newspaper would be the one that INCREASED staffing, INCREASED newshole and DECREASED ad rates and subscription costs to attract more readers and advertisers.
That newspaper operation (with online support and a paywall) may not have double-digit profit margin in the short term, but in the long term, THAT newspaper operation will succeed and grow circulation because the customers will have a product in which the owners themselves have confidence -- in the long haul.
People in these Gannett communities aren't stupid... they know a dinosaur kealing over in a last gasp when they see one...
Short-term layoffs and newshole reductions... all spell disaster. But wait, what does Gannett care?
Posted by Anonymous to Gannett Blog at 5/12/2011 10:24 AM
These painful layoffs will go on and on until Gannett squeezes every penny out of the old print ad model, which still generates plenty of revenue. Newspaper companies are not in the business of innovating digitally; they're in the business of making money the best way they know how. And that's print. Until it's no more.
Posted by Anonymous to Gannett Blog at 5/12/2011 10:31 AM
And the best part is not only is someone who no one respects and is grossly incompetent (initials P.M.) going to keep her job, she's getting promoted and will be a part of the decision-making process for who gets to keep their job. I have no idea what the publisher there is thinking. It's like he's intentionally trying piss everyone off.
Posted by Anonymous to Gannett Blog at 5/12/2011 10:35 AM
excuse me: trying TO piss everyone off.
Posted by Anonymous to Gannett Blog at 5/12/2011 10:39 AM
Which jobs? Any more details? Or is another make it up as we go along move?
Posted by Anonymous to Gannett Blog at 5/12/2011 11:14 AM
12:47- Can you clarify. I worked there 20+ years ago. At the time they had 1 graphics person in the newsroom.
Posted by Anonymous to Gannett Blog at 5/12/2011 11:17 AM
Pretty much everyone's job, except for some editors and columnists, is up for grabs.
Posted by Anonymous to Gannett Blog at 5/12/2011 11:33 AM
And I think photo is safe.
ReplyDeletePosted by Anonymous to Gannett Blog at 5/12/2011 11:34 AM
I'm not sure what all these negative comments are all about. How can Gracia and Craig double their pay next year without these layoffs? You forget it is about them and not us. How inconsiderate of you!
Posted by Anonymous to Gannett Blog at 5/12/2011 12:00 PM
speaking for fort collins, does anyone know the story on Kim W leaving?
Posted by Anonymous to Gannett Blog at 5/12/2011 12:13 PM
These painful layoffs will go on and on until Gannett squeezes every penny out of the old print ad model, which still generates plenty of revenue. Newspaper companies are not in the business of innovating digitally; they're in the business of making money the best way they know how. And that's print. Until it's no more.
5/12/2011 10:31 AM You are exactly right....that is hitting the proverbial "nail on the head"
Posted by Anonymous to Gannett Blog at 5/12/2011 12:34 PM
Can't they just print money?
Posted by Anonymous to Gannett Blog at 5/12/2011 12:48 PM
So very right. Compare Gannet with companies in other industries that fell on hard times. GM restructured and focused on making better products that match the market rather than continuing to try to squeeze money out of high-profit but ridiculous SUVs. Apple came back from near death by making what people wanted and making sure its products work well. There are other factors in both cases and neither is a perfect analogy but the point is these companies sought to improve their core business. Gannett is destroying the only thing it has to sell, which is local content. You'd think sooner or later some major institutional shareholders would wake up. But I guess they don't care about long-term either; they just want their portfolios to look good quarter to quarter. What an f-ed up economy.
Posted by Anonymous to Gannett Blog at 5/12/2011 12:53 PM
The other sad thing is, those who have to reapply for their jobs end up going through sham interviews. They already know who they want to keep.
When Westchester went through it in '09, they made everyone reapply. Everyone dressed their best, then went in and met a Gannett HR person, who didn't have the power to hire. They were just there to ask prepared questions and type in answers. The HR person didn't have a clue about how my job was like, and kept trying to get me to answer the question like it was prepared, even though it didn't fit.
It was ridiculous, and a total waste of time.
Posted by Anonymous to Gannett Blog at 5/12/2011 2:07 PM
Just looking at the ACT circ. numbers from March vs Sept there is a lost of approx. 2600 subscribers on the Sunday side. Also when you go on their web-site it states their Sunday circ. is 71,030 March numbers are 49,537. I think they may want to update their numbers but then they are probably telling their customers the numbers that are on the site are correct.
Posted by Anonymous to Gannett Blog at 5/12/2011 2:51 PM
And here are the last ones I've been able to recover:
ReplyDeletethere was also two in finance laid off at ACT yesterday
Posted by Anonymous to Gannett Blog at 5/12/2011 3:53 PM
As for Kim W. at Fort Collins. No one seems to know why still. But funny thing is, she refused to turn in her”company provided car”. It had to be towed from her home 6 weeks after she left. It was taken back to the Coloradoan parking lot.
Posted by Anonymous to Gannett Blog at 5/12/2011 3:55 PM
I am sure they are lying about their real circulation because if the truth were know, they would lose millions company-wide in preprint and insert revenue that is based on a distribution number.
Companies such as Wal-Mart, RedPlum (glossy coupons) and Home Depot are growing more and more skeptical of these phantom circulation numbers.
Remember that New Jersey publisher who had tucked away thousands of undistributed inserts on his boat?? hahahahaha
Companies who put their preprints and inserts in their papers are starting to demand the truth... and in this case the truth is REALLY going to hurt Gannett.
I can't wait.
Posted by Anonymous to Gannett Blog at 5/12/2011 3:56 PM
This comment has been removed by a blog administrator.
ReplyDelete