Struggling USA Today offered the early retirement buyouts this morning, according to Gannett Bloggers. Any such offers come as USAT attempts another turnaround amid falling national advertising and circulation as competitors surge ahead with revenue from digital paywalls.
The 30-year-old paper no longer discloses the size of its workforce; a few years ago, it had fewer than 1,400 employees, making it one of Gannett's single-biggest worksites. Anonymous@1:57 p.m. says 150 employees are eligible for a buyout; it's unclear how many USAT will grant, however.
Gannett last offered large buyouts in April, in the U.S. community newspaper division.
National ads, a proxy for USAT's health, fell 6.4% in the fourth quarter. While that includes all of Gannett, the flagship daily accounts for a disproportionate share. The paper is now in its 10th month of new leadership under Publisher Larry Kramer.
To be sure, the trend is improving. National fell 7.6% in the third quarter; 18.2% in the second quarter, as Kramer was coming on, and 14.5% in the first quarter. What's more, digital revenues at USAT and its associated businesses jumped 28% during the quarter.
The 30-year-old paper no longer discloses the size of its workforce; a few years ago, it had fewer than 1,400 employees, making it one of Gannett's single-biggest worksites. Anonymous@1:57 p.m. says 150 employees are eligible for a buyout; it's unclear how many USAT will grant, however.
Gannett last offered large buyouts in April, in the U.S. community newspaper division.
 |
| Kramer |
Circulation falls anew: down 4%
It's worth noting that USAT's ad sales were restructured well before Kramer's arrival, with the February 2012 appointment of Mary Murcko as president of Gannett-wide national sales. Also, in September, USAT redesigned its digital sites and the print edition to attract more business.
Circulation fell 3.9% in the six months ended Sept. 30, to 1.7 million. Among the 10 largest dailies, it was one of only three reporting a decline.
USAT remains the nation's top-circulating print publication. But unlike its two other national rivals, The Wall Street Journal and The New York Times, USAT doesn't charge for digital access, a growing source of revenue especially for the NYT.
In the fourth-quarter earnings conference call with analysts, CEO Gracia Martore cautioned that the paper's restructuring would take time.
'Multi-year transformation'
"This wasn't a one- or two-quarter transformation," she said in response to a question, according to Seeking Alpha's transcript. "This is a multi-year transformation. And I'd say that's where we stand with USA Today right now is we are getting great feedback on the print side, we're getting terrific feedback on our digital platforms. I think we've made a lot of great enhancements. I think our sports vertical is going to be a good one for us. I think our travel work that we're doing is going to bear fruit. But it doesn't just bear fruit in one quarter, it's going to take a little time."
Under Kramer's predecessor, Dave Hunke, USAT attempted an earlier restructuring in 2010-2012. But that failed to stem ad and circulation losses, and Hunke retired last September.
Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.
It's worth noting that USAT's ad sales were restructured well before Kramer's arrival, with the February 2012 appointment of Mary Murcko as president of Gannett-wide national sales. Also, in September, USAT redesigned its digital sites and the print edition to attract more business.
Circulation fell 3.9% in the six months ended Sept. 30, to 1.7 million. Among the 10 largest dailies, it was one of only three reporting a decline.
USAT remains the nation's top-circulating print publication. But unlike its two other national rivals, The Wall Street Journal and The New York Times, USAT doesn't charge for digital access, a growing source of revenue especially for the NYT.
In the fourth-quarter earnings conference call with analysts, CEO Gracia Martore cautioned that the paper's restructuring would take time.
'Multi-year transformation'
"This wasn't a one- or two-quarter transformation," she said in response to a question, according to Seeking Alpha's transcript. "This is a multi-year transformation. And I'd say that's where we stand with USA Today right now is we are getting great feedback on the print side, we're getting terrific feedback on our digital platforms. I think we've made a lot of great enhancements. I think our sports vertical is going to be a good one for us. I think our travel work that we're doing is going to bear fruit. But it doesn't just bear fruit in one quarter, it's going to take a little time."
Under Kramer's predecessor, Dave Hunke, USAT attempted an earlier restructuring in 2010-2012. But that failed to stem ad and circulation losses, and Hunke retired last September.
Please post your replies in the comments section, below. To e-mail confidentially, write jimhopkins[at]gmail[dot-com]; see Tipsters Anonymous Policy in the rail, upper right.
Cutting your way to growth -- the newspaper industry's standard response for the last decade.
ReplyDeleteJohn, Jogn, John. You embarrass yourself by calling USAT a newspaper. You represent the dinosaurs that don't get it!
ReplyDelete12:38 -- You represent the dinosaurs who can't write.
DeleteAnd 7:20 lands a knockout punch! Down goes 12:38!
DeleteInteresting side note to this. There are about 150 people eligible for the buyout this time around ... that could leave the decks pretty clear of all those nasty elder statesmen/women who command the high salaries if all accept.
ReplyDeleteThat seems to be the key to making USAT the premier publisher of content heading into the next 30 years. At least, according to the e-mail.
ReplyDeleteThis is another very major development where The Blog is basically useless. Except for bad-mouthing, there's not one scrap of actual information offered or gathered.
ReplyDeleteEven Jim's story is a lede and then the usual USA TODAY is struggling b-matter.
At these prices, we expect better!
Prices?
DeleteAlso, the USAT is struggling material is context, and it's drawn from regulatory filings that very few employees read.
In a statement to blogger Jim Romenesko, USAT spokeswoman Heidi Zimmerman said: "“An announcement was made to staff today that employees who are at least 55 years old and have 15 years of service to the company are eligible for a buyout. Terms are two weeks pay for every year of service -- not to exceed one year. Insurance remains in effect as long as you’re getting paid.”
ReplyDeleteAs I wrote earlier in another thread, USAT's buyout terms are much better than the TPP benefit Gannett gives when it reduces staff via a conventional layoff. Under TPP, you are required to collect government unemployment benefits; the company pays the difference between those benefits and what you were earning. And TPP lasts no longer than 26 weeks.
TPP is an excellent example of how really rotten Gannett has become as an organization. To find a wedge in the system that allows you to pay your just fired staff less money at a time in their lives in which they need all the support they can get is just reprehensible.
DeleteAmen to that!
Deletesuch is life in Gannett land...after 14 years that is exactly what I got...crappy severence
DeleteWhen I got into the newspaper business years ago, it was because I thought it had more integrity than other professions. I thought there were higher standards for ethics and honesty. I thought news folks at all levels called a duck a duck and were in the business to make sure what was being reported was fair and accurate. I thought newspapers were the champions of the underdog, not the bully or the liar. I got into the business because even with all of its faults, it was better than going into marketing or PR at a tobacco company.
ReplyDeleteWell, USA Today is a prime example of why few people inside or outside the business have much faith in the Fourth Estate anymore. USAT leaders have shown virtually zero interest in time-honored principles that helped inform the public and steer this country for decades.
USAT's leaders lack basic intellectual honesty when describing their actions against their own people, so how could we ever expect that what is printed in their paper is pure, objective and without spin? Managers at USAT Today seemingly know nothing but spin these days.
Implying that these buyouts are anything other than the cruel purging of seasoned employees is just a lie. This is not a retirement program in any stretch of the imagination. Calling it anything but what it is is utterly disgusting behavior more suited to the oil or banking industry. It's also misguided because so many wrong assumptions are being made about the workforce and the future of the business. The mainstream, legitimate news business isn't going to thrive by following the latest fashionable trends. The business is going to weather the storm like it always has, adjusting where needed, but sticking to core principles, embracing accuracy and making sure there are enough folks around to mentor the next generation.
USAT, you have lost your way in your own sea of lies over the last five years. Earlier layoffs were NOT primarily driven by the Great Recession. They were driven by stock prices and a few opportunistic managers trying to save their own butts while settling scores with defenseless subordinates.
Now you want to label this latest attack on your people as some sort of compassionate act that will not only help those who are pressured out, but will somehow also make the product better? Better for whom? Who exactly are you trying to market yourselves to? You seem to be moving further away from educated news consumers. So who are you after? The idiots who sit around watching people crash their bikes into walls on YouTube?
C'mon USAT. You're a greedy, corrupt beast feeding on its own flesh, buying into a youth movement that isn't ready for prime time yet, but who believe everything you say because you're giving them a paycheck. You sit there in your lavish offices believing your own lies. Your HR and legal people and others are your co-conspirators. You are not worthy of being thought of in any higher regard than the average used car business. And anyone of any age who wants to be a part of this disgraceful business is either naive to the point of not qualifying to be a journalist, or is as scummy as the the people sitting in their corner offices ruining other people's lives based on nothing more than age and stereotypes.
BINGO, 7:43 PM!
DeleteExcept that tobacco companies pay their shills a lot better, and don't throw them under the bus without greasing their hands with a lot of Benjamins.
Journalism used to be: comfort the afflicted, and afflict the comfortable.
But Gannett's credo is: Comfort the comforted (executives), and afflict the afflicted (workers).
Best thing that can happen for communities infected by a Gannett product: refuse to spend money on it. When corporate realizes a community will no longer choose to line the pockets of its executives, it will divest.
So 7:43 can we consider you a NO for the buyout? You seem, oh I don't know, negative? You must be a joy to work with!
DeleteAgree with many of your thought, 7:43. But the simple fact is there are too many high priced editors and reporters on the payroll who provide little to the increasing demands of content production and distribution. Kramer is at least providing a gentle, dignified way out , especially for people close or near retirement. Do you think Hunke would have offered a year's pay? No way.
DeleteI just feel sorry for those who think they can survive the coming purge. If I had the opportunity to get out, I would in a heartbeat.
10:44's right.
DeleteAs somebody who was a sports stringer for AP until 2011, can anybody tell me if what Anonymous wrote at 7:43 p.m. on March 11 is true of AP, as well?
DeleteI can't answer that question; I don't know anyone who works for AP. Perhaps someone else can.
DeleteThank you! So very, very true! USAT protects the imbeciles at the top who look after themselves, get fat paychecks and treat those under them as less than human. Worst place I ever have worked in my life. I truly despise the managers who are so smug. Hope this cartoon rag DIES!!!!
DeleteHere's an important consideration for anyone considering a buyout:
ReplyDeleteMany Gannett journalists who took buyouts learned after the fact that they could not freelance for their newspapers once they were out of the company. I have no idea why this rule is in place, but it's important to consider if you're planning on freelance income from your former employer.
You were a business reporter and have no idea why a person who takes a buyout can't be a freelancer? Really. And you run this blog.
DeleteMy understanding was you could not free-lance while getting buyout pay, but what about after it runs out?
DeleteAt our site management won't let the departed freelance while they are receiving buyout checks. But after that, the ex-employees are actively sought out as freelancers.
DeleteFrom one who took the buyout last April, make sure you have everything in writing, fully understand what you will receive and you will likely get unemployment. To find a job will be hard too.
ReplyDeleteSorry. Correction. No unemployment.
ReplyDeleteWhen the very original buyouts happened back in 08 or 09(its all a blur when it was), the people that took them received unemployment after they received their full amount of paid weeks
DeleteDear 7:43- I read your comment, nodding my head in agreement with your words, which expressed what a lot of us feel about the current news and past actions of this company.
ReplyDeleteUntil I got to the last graph, which, unless I'm totally missing the point, has a very accusatory tone to it. That, unless we take a buyout or leave in protest, we're co-conspirators and no better than the perpetrators in glass offices.
I'm sure a lot of us would love to do that-to tell them to take the job and shove it, to delete our source files, slam down our notebooks and walk out singing "Solidarity Forever" at the top of our lungs. Oh, except we don't have a union or any protection.
What we do have are bills and loan payments and rent and mortgages, which means that's not happening without another job in hand.
The sad reality is there are few to no journalism or media jobs out there, which means, even if we loathe the people who are doing this, we're stuck there due to economics. It's plain and simple. Any one who quits without another job is committing economic suicide, unless they're sitting on a winning lotto ticket.
What jobs are out there are being snatched up by out of work employees cut lose by Gannett or other downsizing media companies. It's the grim economic reality.
And why should current employees, as the Teamsters are fond of saying leave without "making them pay" either in severance, unemployment or buyout. I'm sure if I walked in tomorrow and yelled "I quit" they wouldn't be saying "wow, he sure showed us." I'm sure they've laugh all wht way to the next bonus check for reducing pay roll and head count.
So go easy on us current USCP employees 7:43. We're like a spouse stuck in a bad marriage, saving up a nest egg so we can leave, until it's financial feasible, it's not going to happen.
Looking forward to the day we all tell them to take this job and shove it....
wht in the 3rd to last graph should read "the"
DeleteThe really sad reality is the highest priced people aren't taking the buyout. Why should they while they can remain on continued vacation, doing little more than memo writing, attending meetings and ass kissing. Such frauds. They don't give a shit, and most of their protected pets are just phoning it in.
ReplyDeleteMakes me sick. Too bad Callaway and Kramer are oblivious.
Do you mean people like Donahoe?!
Deleteexactly right!!! they do absolutely nothing but make themselves look like heroes that saved the day by laying off people!! wonder if they have to "pick up the slack" of the ousted workers...NOT!!! stay in your ivory towers until one day you will look down and see there is no one left....newspapers are a dying breed and most of their papers are already dead!!
DeleteWell, you could work for a bankrupt Journal Register paper and be fired at the end of this month, as I understand it, then have to reapply with the new owner and hired at their discretion and at reduced pay, come April.
ReplyDeleteHere's an exercise that is sure to raise some eyebrows. How is your website doing against your main competitor(s)?
ReplyDeleteAdd your website to the end of the following URL:
http://www.alexa.com/siteinfo/
Then open up another tab, and add your competitor's website to the end of the same URL again.
Contrast and compare the variety of analytical tools.
Start with "Rank in U.S."
My hypothesis:
Gannett properties have been falling in the ranking metric since going behind a paywall with comments only allowed by FaceCROOK registrants.
You all willingly came to Gannett, the biggest newspaper corporation in America. You all accepted pay raise here and there for very little actual work done over the past few decades. Now that there is work to be done, and the corporation wants to pay people less for it, you cry foul.
ReplyDeleteYou'd do the same thing if you were trying to make money in a corporation that is dying. Be glad they are offering something to the older folks and it is optional, not just a pink slip.
On point 3:10.
DeleteI know several that make $50,000 to $70,000 for basic copy editing work a college graduate (or less) could do for under $30,000 with less vacation time and they are healthier.
The Gannett rule: once you have your salary you keep it, even if you take a lesser job. We have an Editor I ($55,000-management) reading web copy. We have an Editor III (who knows how much she makes) managing 4 people (used to be she managed 10-12).
Gannett would save money looking into these kind of loopholes.
This comment has been removed by a blog administrator.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteThe philosophy or practice of allowing an employee to retain a previous salary for a less skilled position is ethically wrong. Especially in a company that has made it almost impossible to get a raise when taking on higher skilled positions. Gannett honestly should audit all cases in which folks are getting paid an inaccurate rate and adjust it according to the skill level of their current position.
ReplyDeleteCallaway made a huge mistake when he appointed the same failures who oversee USA Today to even loftier management jobs. Sadly, most do nothing all day and have no intention of leaving. The amount of obstruction and inertia they bring day in and day out is mind boggling. Most never come out of their offices and interact with staff. Seldom do any offer to help line editors move copy. What are they good for? Absolutely nothing.
ReplyDeleteThe ivory tower many are comfortable in is about to be dismantled. if you cannot justify your job and you are buyout eligible? Take it.
ReplyDelete12:33PM, What are you smoking? No one at USA Today feels comfortable or has seen anything resembling an ivory tower. Everyone is working their rear off trying to get the product out, cope with cumbersome and faulty digital systems imposed on us, and keep up with the latest mindless directives from above. Why the bullying?
ReplyDeleteYou must be smoking something. There is way too much buck passing and not my job mentality. Many editors and reporters are checked out. Work loads are minimal to none existent. Please give this group some actual work to of before the cobwebs take hold.
ReplyDeleteThis ain't bullyiNg by a long shot. Just look around
Here, BTW, is the memo sent to staff on the buyouts:
ReplyDeleteDear colleagues:
With the re-launch of USA TODAY, we are transforming our products and re-imagining USA TODAY for the next 30 years. As part of our efforts to position the organization for the future - we are realigning our operations to further our transformation into a 24/7 multi-platform news organization. To accomplish this, it entails a ground-up assessment of our overall structure and resources. Today we are offering a voluntary Early Retirement Opportunity Program to employees of USA TODAY, USA Weekend and Gannett National Sales who are age 55 or older with at least 15 years of service, as of April 25, 2013.
The Early Retirement Opportunity Program is one part of our ongoing strategy to transform our organization for the future, with a focus on becoming the premiere multi-platform news organization. At this time we are offering this program instead of pursuing other restructuring and cost management actions.
This offer is designed to be as attractive as or better than others in the industry. The offer provides for salary continuation of two weeks’ pay for each complete year of service, capped at 52 weeks, with ongoing health, dental and vision coverage during this period.
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.
If you have any questions feel free to contact either of us, your manager, or Crystal Wheeler in Human Resources (703. XXX.XXXX, cwheeler@gannett.com).
Larry Kramer and Mary Murcko