Position Reductions in U.S. Community Publishing
Due to the difficult business conditions, USCP Division management is reducing positions across all levels.
• Division management gives each site a reduced payroll dollar amount they must meet based on:
Unit’s financial performance
• Sites decide how to reach this payroll reduction:
By not filling vacancies.
Through normal resignations and retirements.
And in most cases by laying off some existing employees.
• Division management with corporate must approve the site-submitted reductions
Protecting our content creation and sales capacity.
Assuring the reductions are consistent with the company’s strategic direction.
• Sites communicate the approved reductions to their affected employees
Estimated number of USCP position losses
• The payroll reduction amount translates roughly into 1,000 fewer positions in USCP
• Probably requiring around 600 people to be laid off
• Approximately 3% of USCP current positions
• By August 15th publishers send a letter to all their employees:
Explaining, in their own words, the points made in this communication.
Telling their employees the number of layoffs at their particular site.
Giving a date, or range of dates, when their employees will leave the company.
• One week of pay for each year of service (52-week maximum)
• Minimum two-week severance benefit
• Medical benefits will continue for the length of the severance period
• Employees laid off may begin receiving their pension plan and 401(k) benefits (depending on applicable laws)
• Government unemployment benefits may also begin after severance benefits end,
depending on state law
More job reductions to come?
• We would prefer no more reductions, but…
We must keep expenses in line with revenue.
If advertising and circulation revenues continue to decline, further payroll reductions may be necessary.
• This communication is about a particular USCP payroll reduction effort
Job reductions resulting from other changes throughout Gannett are not
included in this communication (such as the current project in accounting and finance to centralize some activities in two national shared services centers).
• These people leaving Gannett contributed to its growth and success
• We will thank them for their years of service and treat them in a way that acknowledges their valuable contributions