Gannett to cut 1,400 jobs in new round of cuts
NEW YORK — Newspaper publisher Gannett Co. plans to cut 1,400 jobs in the next few weeks, about 3 percent of the work force, as it faces a prolonged slump in advertising revenue.
Bob Dickey, head of the company’s U.S. community publishing division, informed staff of the layoffs in a letter Wednesday. He told employees that “there have been some promising signs of a recovery, but the reality is the improvements are not broad-based and the economy continues to be fragile.”
The majority of layoffs will come by July 9, he said.
The move follows a 10 percent cut at Gannett in 2008, which left the company with about 41,500 employees.
Gannett publishes USA Today, the largest newspaper by circulation in the U.S., along with dozens of other newspapers.
Dickey’s memo did not mention USA Today, which is separate from the division he heads. A spokeswoman for Gannett did not immediately respond to a request for comment.
Like the rest of its industry, the McLean, Va.-based company has seen advertising revenue wither in the face of the recession and competition from the Internet. Its publishing division reported a 34 percent drop in ad revenue in the first quarter, marking more than two straight years of declines.
Gannett has also tried saving money by requiring employees to take unpaid leave. Dickey said Wednesday there will be no more furloughs this year.
Freedom Communications Inc., publisher of The Orange Country Register and other newspapers, also announced cutbacks this week. The Irvine, Calif.-based company said Monday it will reduce pay across the board by 5 percent, beginning July 13.
Related News
Gannett expects 3rd-quarter earnings to top Wall Street estimates; sales missSeptember 30th, 2009 Gannett expects 3Q earnings to top estimatesNEW YORK — Gannett Co., the largest newspaper publisher in the U.S., said third-quarter earnings should far outpace expectations despite a narrow shortfall in revenue, as layoffs and falling newsprint costs help offset weak advertising sales. Tuesday's announcement gave a sharp boost to Gannett's and other newspaper stocks.
Gannett expects 3rd-quarter earnings to top expectations; sales missSeptember 30th, 2009 Gannett expects 3Q earnings to top expectationsMCLEAN, Va. — Gannett Co., the largest newspaper publisher in the U.S., says it expects third-quarter earnings to far outpace expectations despite a shortfall in revenue.
Newspapers' 2Q advertising sales plummet 29 percent, reducing revenue by $2.8B from last yearAugust 27th, 2009 Newspaper slump deepens as 2Q ad sales fall 29 pctWASHINGTON — Newspaper advertising sales shrank by another $2.8 billion in the second quarter, a 29 percent decline from the same time last year. The numbers released Thursday by the Newspaper Association of America show the industry's financial woes deepened in the April-June period.
At NY newspaper, 50 news jobs are cut, entire staff can apply for 'redefined' jobsAugust 13th, 2009 NY newspaper cutting 50 news jobs, redefining restWHITE PLAINS, N.Y. — A suburban Gannett Co.
Publisher of Journal Sentinel to cut 92 jobs, or 6 percent of work forceAugust 4th, 2009 Publisher of Journal Sentinel to cut 6 pct of jobsMILWAUKEE — The publisher of the Milwaukee Journal Sentinel is cutting 92 jobs as the current advertising slump continues to ravage the newspaper business. The cuts represent 6.2 percent of the work force at Journal Sentinel Inc.
Cost cuts help New York Times Co. report 2nd-quarter profit despite ad declineJuly 23rd, 2009 Cost cuts return New York Times Co. to profitNEW YORK — The New York Times Co.
McClatchy posts higher 2nd-quarter profit despite drop in revenueJuly 21st, 2009 McClatchy posts higher 2Q profit despite slumpSACRAMENTO, Calif. — Newspaper publisher McClatchy Co.
Gannett posts 2nd-qtr profit above analyst views, reversing year-ago loss despite sales dropJuly 15th, 2009 Gannett posts 2Q profit, beating analyst viewsMCLEAN, Va. — Gannett Co.
A wisp of hope: Gannett's 2Q profit tops analyst views, management sees less ad erosionJuly 15th, 2009 Gannett shares jolted by possible ease in ad slumpSAN FRANCISCO — Gannett Co., the largest U.S. newspaper publisher, used sharp cost cuts to deliver a higher-than-expected second-quarter profit Wednesday and offered a wisp of hope that the industry's advertising drought may be subsiding.
Gannett posts 2nd-qtr profit above analyst views despite sales dropJuly 15th, 2009 Gannett beats forecast with 2Q profit; shares jumpNEW YORK — Gannett Co., the largest U.S. newspaper publisher, topped expectations for its second-quarter earnings Wednesday as it reversed a loss from a year ago, even though advertising revenue continues to dive.
Gannett implements layoffs at US newspapers in latest round of cutbacksJuly 11th, 2009 Gannett implements layoffs at US newspapersNEW YORK — The latest wrenching cutbacks at Gannett Co. fell this week, as hundreds of employees at the country's largest newspaper publisher received notices of layoffs.
Gannett Co. eliminates 125 positions at its 6 New Jersey newspapersJuly 10th, 2009 Gannett eliminates positions at 6 NJ newspapersTRENTON, N.J. — Gannett Co.
Report: Gannett to jettison more than 1,000 workers to offset counter newspaper ad slumpJuly 1st, 2009 Report: Gannett to lay off more than 1,000 workersMCLEAN, Va. — Gannett Co.
Internet ad revenue falls 5 pct in first quarter, first year-over-year decline since 2002June 5th, 2009 Internet ad revenue falls 5 pct in first quarterPHILADELPHIA — Internet advertising revenue is down 5 percent. The decline in the first quarter of 2009 represents the first year-over-year decline in seven years as the recession takes its toll even on the hardiest of ad sectors.
Gannett leaves dividend unchanged at 4 cents per share in bid to preserve cashApril 28th, 2009 Gannett declares dividend of 4 cents per shareMcLEAN, Va. — Gannett Inc.
Loading ...
July 2nd, 2009 at 12:09 am
Wow, this really sucks, especially for someone trying to get into the field of journalism…not to mention the 1,000 people or more that are losing their jobs.