Report: Gannett to lay off more than 1,000 workers

MCLEAN, Va. — Gannett Co. is preparing to lay off more than 1,000 employees as the largest newspaper publisher's work force continues to shrink along with its advertising sales.

Between 1,000 and 2,000 people will lose their jobs in Gannett's latest round of cutbacks, according to a story published Tuesday on The Wall Street Journal's Web site. The Journal quoted an unnamed person familiar with the McLean, Va.-based company's thinking.

The layoffs aren't a major surprise because Gannett's main source of revenue _ advertising _ has been rapidly drying up. Ad sales at Gannett's newspapers plunged 34 percent during the first three months of this year and analysts doubt the company fared much better during latest quarter that just ended.

Gannett didn't immediately respond to requests for comment. The company currently employs about 41,500 people after jettisoning about 10 percent of its work force last year.

The upcoming purge isn't expected to hit Gannett's largest newspaper, USA Today, the Journal said. Gannett owns more than 80 other daily newspapers.

More details are expected to be released within the next few days, according to a story on The New York Times' Web site that quoted unnamed Gannett executives.

Gannett is scheduled to release its second-quarter results July 15.

Most other major newspaper publishers also are reeling from a devastating one-two punch _ the longest U.S. recession since World War II coupled with intensifying Internet competition for readers and advertising. To cope, the troubled publishers have trimmed their payrolls, lowered wages and, in the most extreme cases, filed for bankruptcy protection.

Gannett tried to save jobs by forcing most of its U.S. employees to take at least two weeks of unpaid leave during the first half of this year. In other austerity measures, Gannett closed the print edition of The Tucson Citizen in Arizona and curtailed home delivery of the daily Detroit Free Press to just three days a week.

Comments

[Adartist777]

I had a newspaper career earlier in the decade with the Phillips newspaper chain. The circulation numbers weren't there to justify the high advertising rates this paper charged its clients. Now, they've lost their automobile advertising and their real estate advertising and the Phillips family finally sold most of their publications, if not all, and went into the retirement resort business in southern Florida. Local ads were practically nil when I left.

I feel bad for the Gannett employees, but they had to see it coming and I hope some of them are prepared. Newspaper journalism is quickly becoming a dinosaur in America. It's a shame because the reporting of local politics, business, high school sports and human interest stories are going to be a thing of the past. It's important that people are informed at a local level, but now they won't even know where and when local political meetings, such as school board and county and city council meetings will be held. They will never see a story on the athletic prowess of a son or daughter in high school.

If stories are reported at all, they'll be reported by amateur journalists on the web.

My suggestion to Gannett employees is to return to school to learn new skills. Journalism on the web doesn't pay the same as journalism in a newspaper newsroom. You're paid by the number of hits that your page receives. Good luck to those that are laid off.

[Albertmum]

I wish they'd extend that to their news channel here in Denver. They've got an anchor that is well past her sell by date and they've lost numerous good anchors due to her. I stopped watching and switched to another channel, better news anchors, better news.

[rogerthat21]

where are the jobs, Obama?

hat tip to: http://investmintideas.blogspot.com for the good articles

[KCFreedom]

China and India

[TFlint]

Gannet has a plan. Drive their local newspapers out of business and switch their subscribers to USA Today.
USA Today has never been a successful newspaper. They fake circulation numbers by clearing out the street corner boxes at noon and sending the remaining papers (almost all) to hospitals.

[KCFreedom]

There's been rumors for years that USA Today has government moles creating and censoring the content. Who knows? I don't read any newspapers anymore.

[KCFreedom]

So I guess that journalism isn't a wise degree to pursue these days?

Actually, what IS a good degree to get or profession to choose? The only guarantees are health care and unfortunately, "homeland security".

[iblogleft]

I had the privilege of being a consultant to Gannet, for which they paid out my contract and sent me on my way. They simply did not want to hear (back in 1996) that print was going away, and they needed to invest in internet backbone and portals to keep market share.

I hate to see so many lose jobs, but had they not clung to old views by old people with an obvious hatred for anything change, they would be in a very strong position right now.

Just think what the news industry would look like today if they had a share of they very pipeline that sends their information (and everyone else's). Journalism would be a different market now for sure.

[TFlint]

Right on. Gannet has always been an arrogant, greedy, union busting company designed to drain the life blood of local newspapers. They have always treated their employees with contempt. I know. I was one of them.

[KCFreedom]

Ever notice how the worst companies to work for are the ones who end up buying their competition out? It happens in most, if not all industries.

From what I can tell, we're stuck with a bunch of consolidated industries who suck to work for in America.

[woodstein76]

I think you have them confused with GateHouse Media.

[BlackMaybe]

I got out of Gannett two years ago and couldn't be happier. Still talk to people there and they are nervous. The huge building they work in is becoming a ghost town! Crazy!

[hey0there]

more gannet layoffs? Is there anyone even left to get rid off now?

The morale at this place must be in the toilet.

[Jezdukowski]

I worked for them for 6+ years - quit in 2005. The morale was ALWAYS in the toilet, even then.

[wdw505]

yes about 40,000 people

[TFlint]

A Gannet executive once told me ( a Gannet employee) that low morale was always part of the business plan, so that no one would stay long enough to retire.

[KCFreedom]

That seems to be the business plan for ALL corporations in America, now.

I've been in the software/electronic industry for 25 years and every time I work for a company that is good to work for, they get bought out by a company that SUCKS to work for. Nothing good will last, it seems. Nothing will last long enough to retire from, either.

[TFlint]

The Cincinnati Enquirer (a Gannet newspaper) has had it's staff cut to the bone before these new layoffs.

[Adartist777]

Clarity Media killed the Baltimore Examiner. Wonder where those people went?

[JLennon4Life]

in a related story, freedom of information act requests from small community police stations are down. Ouch! Karma stings.