Racing to shore up unprecedented losses in revenue and profits, Gannett is now quietly engaged in an aggressive new round of budget cuts that could wipe out as many as 2,300 jobs, or 5% of the company's workforce.
The latest cuts were revealed today, when the Springfield News-Leader reported that GCI is consolidating finance and accounting for 67 of its newspapers and TV stations -- moving the work to two new service centers at company locations in Indianapolis and Springfield, Mo. The shift will wipe out a net 167 jobs, the paper says -- with the possibility of more consolidation to come. "Gannett may move other services at its more than 100 newspaper and broadcasting sites to the Springfield and Indianapolis service centers,'' the story says.
Gannett hasn't disclosed details of the new budget cuts, including any final target. The consolidations at Indianapolis and Springfield follow similar shifts involving customer service, photo-toning, TV station graphics, advertising art production, and copyediting work. The company's silence has created even more uncertainty for the company's approximately 46,000 employees.
"Anyone have a rough estimate of how many Gannett papers have offered buyouts now?" a Gannett Blog reader in Alabama said in a comment yesterday. "I'm in Montgomery, and we haven't heard any talk of it, but the recent rash of buyouts has many people nervous."
Rumors swirled last week that the company planned to ax perhaps 1% of payroll, based on June levels. But recent buyouts and layoffs in Cincinnati; Jackson, Miss.; Detroit; Fort Myers, Fla., and Honolulu, have been in the range of 5% of their workforces. If that higher figure were applied across Gannett, combined job cuts would be close to 2,300.
"Every newspaper will face this in the very near future,'' a reader here says. "The 'loser' papers (those with publishers with the 60's mentality of 30%-40% profit margins frozen in their brains) are the first to be affected. Cincy is a classic example. They have/had 900 employees? It's a wonder they aren't looking for 250 buyouts."
Budget cuts at your Gannett workplace? Please post details in the comments section, below. To e-mail confidentially, write gannettblog[at]gmail[dot-com]; see Tipsters Anonymous Policy in the green sidebar, upper right.
[Image: today's News-Leader, Newseum]