Monday, October 17, 2011

Here's why so many of you are getting laid off

"If could elaborate a bit on what you think you could still do on the cost side?" 

-- Alexia Quadrani of JP Morgan Chase & Co., posing the first question to CEO Gracia Martore during today's third-quarter earnings conference call with Wall Street stock analysts. Other analysts also quizzed Martore about additional cost-cutting steps in the call's question-and-answer session.


  1. Martore's reply: "As to the fourth quarter and beyond, we will continue to manage as we always have at this company, aligning our expenses against the opportunities we see."

  2. My favorite question, as recording by seeking alpha, is this:

    Craig A. Huber - Access 3:42, LLC: ... Since 2007, you were very well run before that if you've taken out here roughly 33%, 36% of costs since 3Q 2007, but by my calculations, revenues have dropped 43% in Newspaper division. ... Do you think you could take out another, say, 10% of your cash costs, putting aside Newspaper over, say, the next 2 years if the economy does not cooperate?

  3. Nobody asked anything about the recent publishing division separation or the US Presswire acquisition, did they?

  4. Here's two words you won't find in that transcript: "quality journalism."

  5. Gannett has been one of the worst companies for journalists for at least 30 years. But what it has become in the last three years is truly astonishing.

    Gannett's actions during the recession have shown what an evil, short-sighted company it is. It's treatment of thousands of journalists has bordered on criminal.

    Back in the 90s, I didn't think a media company could have a worse reputations among journalists. Well, Gannett/USAT, you've outdone yourselves.

    While everyone is screaming at Wall Street and bankers, Gannett ranks right up among the most flagrant corporate offenders. It's treatment of older workers is infamous. It's business practices have been unethical for a very long time.

    Where are the "Occupy Gannett" protesters? I'd like to see a sit-in Jones Branch Road.

  6. Unfortunately, gannett is a business, and journalism is, for many of us, a calling. So there is bound a clash of philosophy. The business model calls for a leaner organization. No matter who is in charge. Stop beating your head against the wall. Do the best you can and try not to let the situation eat away at you.


Jim says: "Proceed with caution; this is a free-for-all comment zone. I try to correct or clarify incorrect information. But I can't catch everything. Please keep your posts focused on Gannett and media-related subjects. Note that I occasionally review comments in advance, to reject inappropriate ones. And I ignore hostile posters, and recommend you do, too."

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