Gannett's partner in Tucson, Lee Enterprises, disclosed yesterday that it had laid off 52 employees in a "realignment" of its operations, according to a too-brief Arizona Daily Star story posted early today.
"These actions, precipitated by the ongoing weakness in the economy and adjustments to our business model, made for a tough day," said Publisher John Humenik.
More than most newspaper publishers, Lee is struggling to restructure its debt amid growing fears it may seek bankruptcy court protections. Only this week, the New York Stock Exchange threatened to delist Lee's stock because the share price failed to meet the exchange's 30-trading-day average of at least $1 a share.
Lee closed yesterday at 92 cents, up a penny. GCI closed at $13.76, up 42 cents.
The Star is the surviving daily in what had been a joint operating agency owned 50-50 by GCI and Lee. Two years ago, GCI shuttered its paper in the JOA, the Tucson Citizen, and laid off about 60 employees as a result.
Based in Davenport, Iowa, Lee publishes 49 daily newspapers, and owns a joint interest in four others. It's biggest is the St. Louis Post Dispatch, with a daily circulation of about 196,000.
Lee comments below
I've copied all of yesterday's comments in the comment field of this post, so Tucson employees can have a separate forum of their own. Also, I've now added a "Lee" label to all the posts previously labeled only as "Tucson." That is because a blog devoted to Lee Enterprises has not been updated since December, suggesting that it is now defunct.
For several years, I have labeled posts "MediaNews Group," too, because of its business relationship with GCI in Detroit and elsewhere. I cannot cover Lee and MediaNews with the same detail as I do GCI. But I'll try to pay closer attention to both companies as a resource to their blog-less employees. (Why GCI is the only one with a blog like this.)
JOA status?
I've read conflicting reports on the current state of the Tucson JOA.
The Tucson Sentinel, which tracked the layoffs throughout yesterday, says the Star took over operations from Tucson Newspapers Inc., the former joint operating agency that ran publishing and advertising for the Star and the Citizen. Profits are shared between Lee and GCI.
But Corporate, in its annual 10-K filing with the U.S. Securities and Exchange Commission, said the JOA remains in place. Here's the relevant paragraph:
"Through May 2009, the company also published the Tucson Citizen through the Tucson joint operating agency in which the company held a 50% interest. Because of challenges facing the publishing industry and the difficult economy, particularly in the Tucson area, the company ceased publishing the Citizen on May 16, 2009. The company retained its online site and 50% partnership interest in the joint operating agency which provides services to the remaining non-Gannett newspaper in Tucson."
[Image: today's Star, Newseum]
More than most newspaper publishers, Lee is struggling to restructure its debt amid growing fears it may seek bankruptcy court protections. Only this week, the New York Stock Exchange threatened to delist Lee's stock because the share price failed to meet the exchange's 30-trading-day average of at least $1 a share.
Lee closed yesterday at 92 cents, up a penny. GCI closed at $13.76, up 42 cents.
The Star is the surviving daily in what had been a joint operating agency owned 50-50 by GCI and Lee. Two years ago, GCI shuttered its paper in the JOA, the Tucson Citizen, and laid off about 60 employees as a result.
Based in Davenport, Iowa, Lee publishes 49 daily newspapers, and owns a joint interest in four others. It's biggest is the St. Louis Post Dispatch, with a daily circulation of about 196,000.
Lee comments below
I've copied all of yesterday's comments in the comment field of this post, so Tucson employees can have a separate forum of their own. Also, I've now added a "Lee" label to all the posts previously labeled only as "Tucson." That is because a blog devoted to Lee Enterprises has not been updated since December, suggesting that it is now defunct.
For several years, I have labeled posts "MediaNews Group," too, because of its business relationship with GCI in Detroit and elsewhere. I cannot cover Lee and MediaNews with the same detail as I do GCI. But I'll try to pay closer attention to both companies as a resource to their blog-less employees. (Why GCI is the only one with a blog like this.)
JOA status?
I've read conflicting reports on the current state of the Tucson JOA.
The Tucson Sentinel, which tracked the layoffs throughout yesterday, says the Star took over operations from Tucson Newspapers Inc., the former joint operating agency that ran publishing and advertising for the Star and the Citizen. Profits are shared between Lee and GCI.
But Corporate, in its annual 10-K filing with the U.S. Securities and Exchange Commission, said the JOA remains in place. Here's the relevant paragraph:
"Through May 2009, the company also published the Tucson Citizen through the Tucson joint operating agency in which the company held a 50% interest. Because of challenges facing the publishing industry and the difficult economy, particularly in the Tucson area, the company ceased publishing the Citizen on May 16, 2009. The company retained its online site and 50% partnership interest in the joint operating agency which provides services to the remaining non-Gannett newspaper in Tucson."
[Image: today's Star, Newseum]
Anonymous said...
ReplyDeleteBig layoff in Tucson today 20+
7/21/2011 3:27 PM
Anonymous said...
http://www.tucsonsentinel.com/local/report/072111_star_cuts/daily-star-axes-20-newsroom-marketing-advertising/ Here's a link to a story about Tucson (Arizona Daily Star and TNI) layoffs. By a blogger who's a former Tucson Citizen reporter.
7/21/2011 3:31 PM
Anonymous said...
Tucson number now up to 40. http://www.tucsonsentinel.com/local/report/072111_star_cuts/daily-star-axes-40-newsroom-marketing-advertising/
7/21/2011 3:59 PM
Anonymous said...
Maybe even an editor at the Star is out the door. That would be something.
7/21/2011 4:03 PM
Anonymous said...
It has been a bloodbath in Tucson today. Every department got hit. We've been running on a skeleton crew already for a while, and now we're scrambling to get things done because there was a lot of things the newly departed didn't get a chance to finish.
7/21/2011 4:06 PM
Anonymous said...
today's layoffs are more proof that Gracia and Craig are f*cking liars. Just hours ago Gracia said no more layoffs (in immediate future)!
Anonymous said...
Tucson is run by Lee not Gannett
7/21/2011 4:21 PM
Anonymous said...
How many were let go from the Star the last time -- a couple of years ago?
7/21/2011 4:22 PM
Anonymous said...
Tucson is OWNED by Lee but, believe you me, RUN by Gannett. No question about who pulls the strings at 4850 S. Park.
7/21/2011 4:23 PM
Anonymous said...
Nov. 10, 2009, was last big layoff at the Star. Library completely decimated and others from news departments.
7/21/2011 4:37 PM
Jim said...
4:23 Lee owns the Arizona Star. But it shares ownership of the JOA 50/50 with Gannett.
7/21/2011 4:43 PM
Anonymous said...
From the story listed above: "The newspaper, which took over operations from Tucson Newspapers Inc., the former joint operating agency that ran publishing and advertising for the Star and the Tucson Citizen until the latter ceased publishing in 2009, is published by newspaper chain Lee Enterprises. Profits from the South Park operation are shared between Lee and the former publisher of the Citizen, Gannett Inc." (FYI, because I didn't know, either)
7/21/2011 4:50 PM
Jim said...
4:50 Apparently, Gannett needs to update its annual report to the SEC.
7/21/2011 4:57 PM
Jim said...
4:23 But isn't the current chief executive in Tucson someone who came from within Lee? Aren't all employees in Tucson actually Lee employees?
7/21/2011 5:01 PM
Anonymous said...
ReplyDeleteHow can there be layoffs. Didn't that lady who makes a lot if money and spends none if it on her hair just say this week "no layoffs are planned" That's a quick turn around.
7/21/2011 6:37 PM
Anonymous said...
Lee is struggling to restructure its debt or it will end up like Journal Register and others - owned by Alden Global, a hedge fund that will finish off or consolidate sites by the dozen. Then whoever is left can work for minimum wage/few benefits. Breathtaking to watch the industry collapse. And the startups and nonprofits are making tiny inroads, but with 2 or 10 people at a time - not the dozens/hundreds that legacy media sites employed. And the American public will be more ignorant. Scary times.
7/21/2011 6:47 PM
Anonymous said...
I know the ownership pedigree because I worked at the Star when it was a Pulitzer property. I assume my meager retirement won't exist by the time I hit 65. It's a sad, sad day in Tucson.
7/21/2011 8:06 PM
Anonymous said...
If anyone cares, many names now public. http://www.tucsonsentinel.com/local/report/072111_star_cuts/daily-star-axes-40-newsroom-marketing-advertising/
7/21/2011 8:26 PM
Anonymous said...
Jim, Gracia didn't lie about layoffs as the jobs lost in Tucson were job eliminations. As one of the eliminated, let me confirm that the eliminations was closer to 50 than 40 and most were Gannett employees. I believe that all Tucson employees are on Gannett payroll except for the news department who on Lee payroll. CEO Mr. Humenik is a Lee employee as well.
7/21/2011 10:19 PM
Anonymous said...
Jim, the Tucson operation may be 50-50 for Lee and Gannett, but Gannett increasingly is claiming it as a Gannett property. Check out, for example, the rankings of Arizona's largest companies from the Arizona Republic, which lists Gannett with 2,185 employees in 2011, up from 1,750 in 2010. That has to include the Tucson operation. Republic footnote: Total for Gannett Co., Inc., includes all locations and properties in Arizona. The 2010 figure does not include corporate employees.
http://www.azdatapages.com/datacenter/business/arizona-republic-top-100-details.html?fmyid=63 Also, check out the Gannett list of President's Rings for 2011, with two winners from Tucson, for HR and finance: http://www.gannett.com/apps/pbcs.dll/article?AID=9999110428001
The publisher there works for the partnership, which is 50-50. He may be a Lee pick, but he reports to both companies.
7/21/2011 10:19 PM
Anonymous said...
Jim, here's one more example of Gannett-Tucson: http://www.gannett.com/apps/pbcs.dll/article?AID=/99999999/MARKETING/101103001
7/21/2011 10:23 PM
Anonymous said...
Former corporate employee here: Tucson is totally controlled by Gannett. So are many other things you don't know about, such as LANG and BANG in California. Detroit News is a Gannett puppet also. El Paso, so many others. There is so much more no one understands. The finance department in USCP pulls the strings (ER are the initials). This is NOT an exaggeration.
7/22/2011 1:29 AM
Interesting stuff. Jim, I for one like it when you extend the reach of this blog beyond Gannett, because there are other companies doing almost the same thing and yet there is no forum for workers - current and former - to express themselves.
ReplyDeletePretty stunned here that so many newspaper employees on this blog don't understand how a JOA works.
ReplyDeleteLee ad Gannett own the operation 50/50 as previously stated. However, for those of us not in the newsroom, Lee is not very visible at all. We know Lee has half the stake, but it feels like a Gannett property. Our paychecks come from Gannett, as do our benefits. All of our computer systems are managed via Gannett, we have gannett.com email addresses, and we sometimes have to work with the POC to get computer or network issues resolved. There are Gannett posters on the walls, but virtually nothing from Lee. So, yes, fellow Gannetteers (is that even a word?) we are part of your ranks, even with the Citizen closed.
ReplyDeleteA long time ago, in a galaxy far, far away, I used to work for Gannett "controlled" Tucson Newspapers, INC. Could not wait to get out! A co-worker once told me, "Go to work for a REAL newspaper." This is exactly what I did. Unfortunately, my next employer eventually sold out to Gannett and it has been downhill ever since. In its quest for maximun profits, Gannett is now in a death grip of its own making. Tyrants never change until they are deposed.
ReplyDeleteGannett lies in wait... when Lee stumbles, they pick up the Star for a song and have yet another monopoly, just the way they like it. Corporate owned newspapers? R.I.P.
ReplyDeleteHumenik: "Our leadership team is confident that these steps will enable us to focus our efforts and position us for a bright future."
ReplyDeleteHow many from the "leadership team" were walked out yesterday? Wait for it ... none. A lot of middle-management deadwood is still flotsam and jetsam in that newsroom.
re:5:32. Ditto for advertising and other departments, including VP's! Why do you need a VP of circulation when you just hired a VP of Operations and gave HIM circulation? Why do you need a do nothing yes man ad manager that makes six figures? His only job is to kiss up to the latest AD VP. No ad reps, but plenty of high priced managers. Seems the way they announced this was pretty brutual to the employees. Lying to them about why they were being called to a meeting? Real class, those folks.
ReplyDeleteMost of Lee's misery floats from its takeover of Pulitzer when it paid top dollar ($1.6 billion) on the eve of the newspaper industry rapid decline. Big bad debt to repay.
ReplyDeleteNot too different from Gary Pruitt's purchase of KRI around the same time. How could both companies' (MNI and Lee) leaders not seen the future trends?
Seems Lee and Gannett are finally getting their act together in Tucson. With the exception of keeping Jim Rowley, a circulation branch manager or two and a few others on the current payroll today's cuts will help guide the newspaper in the right direction. While unfortunate folks were laid off today it is reflective of a company poorly run by individuals who are/were overpaid and uneducated,: With a few more cuts, (listed above) and teamwork TNI will turn around under Humeniks leadership.
ReplyDeleteA blog in Glens Falls, NY--home to another Lee daily, the Post-Star--has run a series of my posts on the troubles at Lee: http://mofyc.blogspot.com/search/label/Albany%2FGlens%20Falls%20media%20series
ReplyDelete10:32 sounds like a company man. What about lying to people about the purpose of the layoff announcement?
ReplyDeleteI do recall TNI/Star very recently announcing the appointment of another VP.
This sounds desperate. I hope the newspaper survives and thrives despite all this.
ReplyDelete