[Updated at 1:10 p.m. ET with report confirming offer has been announced; new details on number affected, addition of site-by-site buyout tracking spreadsheet.]
A reader now says the offer has just been announced, and that it has been extended to "665 U.S. Community Publishing employees who are age 56 with at least 20 years of service, as of March 31, 2012, and who are in certain departments and/or job categories."
My earlier post: Corporate is expected to announce what would be the first nationwide buyout offer for potentially hundreds of employees early this afternoon, according to readers -- an early-retirement deal that would represent a major shift in the company's payroll reduction strategy.
Timing for these events is always subject to change, including delays or outright cancellation. But I now believe an announcement could come as soon as 1 p.m. ET.
But it would seem likely such an announcement would come after stock markets close at 4 p.m. ET, to give investors time to digest the news. Gannett's stock recently traded for $14.83 a share, down 31 cents, or 2%. That's still way up from a low of $10.30 three months ago.
Gannett Blog speculation for more than a month now has focused on buyouts being offered to employees in their mid-50s and older, likely with a minimum number years of service. I have been unable to confirm those details, however. I suspect the offer will be largely or exclusively for U.S. newspaper workers. There are about 20,000 of those, including all ages.
In a buyout, qualified employees -- usually older, with many years of service -- are asked to quit their jobs in return for enhanced severance benefits. Buyouts are typically offered with a threat of layoffs if an insufficient number of employees accept them.
These are among the details expected with this afternoon's notice, which could come in a memo from at least U.S. newspapers division President Bob Dickey.
Until now, GCI has never extended buyouts to such a broad group of employees simultaneously; in the past, they were offered on a site-by-site basis over different time periods. Any offers would be a dramatic change in GCI's payroll cost-cutting strategy, which since 2008 has focused almost exclusively on increasingly draconian mass layoffs, pay freezes and unpaid furloughs.
Last June, GCI laid off 700 U.S. newspaper workers. Since 2008 alone, the company has shed more than 10,000 jobs, or about 25% of all.
Like other newspaper publishers, GCI is struggling to find new sources of revenue as its mainstay business -- selling newspaper advertising -- remains on the decline. Last year, overall revenue fell 3.7%, to $5.2 billion, on a steeper 7.4% drop in print advertising, GCI reported last week. Earnings tumbled 20%, to $1.85 a share vs. $2.35.
Spreadsheet to track buyouts
Assuming Corporate makes an announcement, I'll count the number of buyouts on a site-by-site basis.
Please go to this spreadsheet and see if your site is represented. Then, in the comments section, below, post any new or updated information.
A reader now says the offer has just been announced, and that it has been extended to "665 U.S. Community Publishing employees who are age 56 with at least 20 years of service, as of March 31, 2012, and who are in certain departments and/or job categories."
My earlier post: Corporate is expected to announce what would be the first nationwide buyout offer for potentially hundreds of employees early this afternoon, according to readers -- an early-retirement deal that would represent a major shift in the company's payroll reduction strategy.
Timing for these events is always subject to change, including delays or outright cancellation. But I now believe an announcement could come as soon as 1 p.m. ET.
Gannett Blog speculation for more than a month now has focused on buyouts being offered to employees in their mid-50s and older, likely with a minimum number years of service. I have been unable to confirm those details, however. I suspect the offer will be largely or exclusively for U.S. newspaper workers. There are about 20,000 of those, including all ages.
In a buyout, qualified employees -- usually older, with many years of service -- are asked to quit their jobs in return for enhanced severance benefits. Buyouts are typically offered with a threat of layoffs if an insufficient number of employees accept them.
These are among the details expected with this afternoon's notice, which could come in a memo from at least U.S. newspapers division President Bob Dickey.
Until now, GCI has never extended buyouts to such a broad group of employees simultaneously; in the past, they were offered on a site-by-site basis over different time periods. Any offers would be a dramatic change in GCI's payroll cost-cutting strategy, which since 2008 has focused almost exclusively on increasingly draconian mass layoffs, pay freezes and unpaid furloughs.
Last June, GCI laid off 700 U.S. newspaper workers. Since 2008 alone, the company has shed more than 10,000 jobs, or about 25% of all.
Like other newspaper publishers, GCI is struggling to find new sources of revenue as its mainstay business -- selling newspaper advertising -- remains on the decline. Last year, overall revenue fell 3.7%, to $5.2 billion, on a steeper 7.4% drop in print advertising, GCI reported last week. Earnings tumbled 20%, to $1.85 a share vs. $2.35.
Spreadsheet to track buyouts
Assuming Corporate makes an announcement, I'll count the number of buyouts on a site-by-site basis.
Please go to this spreadsheet and see if your site is represented. Then, in the comments section, below, post any new or updated information.
59 comments:
Nice summary, Jim. Nice coverage all along. We'll see what the haters say when the announcement is made.
I agree with 11:27 Jim, nice summary. I've heard from numerous people at my site that the buyouts will be this week (exact timing unknown) and that my site, a large publication in the southwest, is not included in the buyout program. Which is unfortunate because a number of people here are hoping for buyouts.
There should be buyouts of all vps iat usa today.
Amen, 11:38.
There should be buyouts for all top suits in Martore's tower.
I've learned from a number of sources within Gannett that publishers are no longer making decisions autonomous to their sites. All business decisions are being pushed down from McLean.
If that's the case, eliminate all of the site publishers, re-title the Finance Director's as General Managers and let the Executive Editors be the forward (customer) facing representatives of the newspaper. This would save GCI millions.
But, alas ...
12:42 - What you say about the publishers role is so true. They have become puppets to corporate. No wonder why the papers are going to hell.
Our publisher can't even find an executive editor. Our editor quit in July and she hasn't replaced him yet. Clarion-ledger -- saving Gannett thousands monthly, while losing readers daily.
Buyouts offered. Vindicated again, Jim.
cincinnati got the notice.
So did Appleton. Did anyone send you a copy yet, Jim, from any of the sites?
Letter has gone out, according to one reader.
Offering is to "665 U.S. Community Publishing employees who are age 56 with at least 20 years of service, as of March 31, 2012, and who are in certain departments and/or job categories."
22 Offered in Nashville
Letters are out
21 in Cherry Hill.
56 with 20 years, 2 weeks capt at 52 weeks..784 meet this bun only the 665 offers,
Goes on to say Cant rule out other actions later.
Republic media got the notice.
Skunked again for starting here fresh out of college. Much more work experience, but not quite enough actual age to qualify.
12 being offered in Jackson, Miss. between newsroom and finance.
64 in Phoenix/Republic Media
CONFIDENTIAL
TO: U.S.C.P. Employees
FR: U.S. Community Publishing President Bob Dickey
RE: Voluntary Early Retirement Opportunity Program
Dear colleagues:
Today we are offering a voluntary Early Retirement Opportunity Program to 665 eligible U.S. Community Publishing employees who are age 56 with at least 20 years of service, as of March 31, 2012, and who are in certain departments and/or job categories. Eligibility by department or job category varies by each operating unit depending on its needs.
This offer was designed to be as attractive as or better than others in the industry. The Early Retirement Opportunity Program also is the first offered by Gannett since 2008. The offer provides for salary continuation of two weeks’ pay for each complete year of service, capped at 52 weeks, and ongoing health, dental and vision coverage during this period.
Employees who are eligible will have 45 days to accept. At the close of the offer period, Gannett will review acceptances and make final decisions based on the terms of the offer.
As mentioned – the program is completely voluntary for these valued, long-term employees. They have helped steer a strong and steady course for the company for many years, including through recent challenging economic times, and their work is deeply appreciated.
It’s worth noting that while 785 employees meet the criteria, the offer is being offered to 665 employees due to ongoing operational needs at the company. The offer is for U.S. Community Publishing employees only.
The Early Retirement Opportunity Program is one part of our ongoing strategy to transform the company with a focus on remaining the top news and information provider in your market. To accomplish this, it entails a ground-up assessment of our overall structure and resources. At this time we are offering this program instead of pursuing other cost management actions but we cannot rule out other actions in the future.
Please look for a separate letter today from your publisher, who will provide more details about this program and your location.
If you have any questions feel free to contact me or your publisher.
Bob Dickey President/U.S. Community Publishing
17 offered in Fort Myers. Accepting 11.
For what it's worth it's a decent package if you qualify. Only the VPs in 08 got this level of coverage.
offered at Asbury 49 accepting 47
Nashville has 25, Sorry..
12 in Jackson miss
Because of the age requirement, I wonder if these buyouts are considered "early retirement." If so, will the "retirees" be eligible for retiree health insurance at the end of the 52 weeks? If so, beware: For a single person, the current cost is more than $600/month. I have no idea what it is for spouse/families.
Just 10 in Indianapolis. WTF?
Damn good question @2:19 as if it doesn’t provide entry into Gannett’s retiree program from their final separation date forward, then this is really nothing more than an employee buyout package, not an “Early Retirement Opportunity” as it’s now being sold.
Correction for Phoenix.
70 qualify and 64 accepted. Please update the spreadsheet.
10 employees in Shreveport will be offered the buyout (IT, accounting, information center, advertising, but no breakdown of how many in each dept.)
42 offered, accepting 20 in Louisville.
Folks EROP is a government term. Gannett didn;t make it up.
Wow. People accepting the same DAY as offered? What do you make of that?
3:37 No. I believe this is the correct explanation:
"Accepting" means that's the maximum number of buyouts the site will accept. The larger figure is the number of people qualified -- the pool from which buyouts would be drawn.
So, in the case of Louisville, 42 qualified, but only 20 will be eventually be granted buyouts.
I don't get offering more than will be accepted...What's the point of that and why put people's lives on hold for 45 days over such an important decision...That's 45 days that someone who wants to accept and begin to make plans has to sit in some crazy limbo...If you're only going to accept 20, then offer 20, and keep a list of other eligible if any of the first 20 don't accept.
13 offered at Florida Today. Yowzah! Guess all the new changes fell flat after all. And since there is no publisher, who makes he final call? Is it Bob Stover the Editor? Doesn't he fall into the buyout category himself?
I've heard some TV stations are included in Community Publishing with offers made to eligible employees. Does anyone know if that is correct or not?
23 eligible in Greenville for 17 slots
Lafayette, LA 8 offered, 5 accepted
Has any of this affected GPS? Perhaps they will have their own list of buyouts?
Any chance the deal might be negotiable? Can I get paid for unused vacation/sick leave instead of the health care benefits, which I don't need?
3 months too young! Damn it!
I still believe, come spring, layoffs will follow, and age/years of service won't matter then.
45 days is Federal law
Keep paying that union dues!!!
26 eligible and 26 offered in cincy between news online and advertising
Jim, just my two cents worth. You have a number of positions that you call "eligible" at my site. I am eligible, but I was not offered a buyout. All in all, 785 were eligible, but only 665 were offered. I am one of the 120 eligible employees who were not offered a buyout.
At our site, employees were chosen by department. Some departments were not affected at all, including mine. I was called into a private meeting after the announcements and told that our department was not included in the buyout because we're already bare-bones and can't afford to lose even one person.
Take from that what you will but I'll choose to hang onto the hope that I'll be employed here at least through this year. And if/when they decide to finally let me go, it will be with a buyout offer similar to what I am seeing out there today.
9:24 and 9:17 are both correct - Cincy's 26 did not include eligible employees from departments outside of news, advertising and online.
Westchester 26/21
it does provide retiree benefits an $600 a month sounds excessive for single person, unless it is a real cadillac plan, which i don't think gannett has. at my site, employee plus one, costs employee and gannett a total of just under $800 a month, and it is my understanding, retirees have to pay the whole thing. can any other retirees weigh in on this.
The 8 offered in Lafayette, LA, include 5 in news (photogs, sports, capital bureau) and 3 in advertising. 5 will be accepted.
Six in Alexandria from advertising, info center and IT.
Poughkeepsie has 7 offered and 3 to be accepted.
Can anyone tell me if in Nashville the IT/Tech Serv Department in included and if so How Many? I do hope that someone special Takes it and leaves..
4 offered in NE Wis (2 advert/1 editorial/1 admin)for 3 papers in Door,Kewaunee,Oconto counties (too far removed from Appleton to know what is happening there)
The spreadsheet has interesting info. While you have a ways to go to get to the 665 offers, does it appear the numbers are proportional to the size of the properties? Were some sites exempted? Do sites of similar size reflect similar numbers or do some sites just have more long-time/older employees?
Hope others will fill in the numbers over the weekend.
Jim, Could you bump the spreadsheet and opportunity to comment higher on the page?
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