Gannett Confirms Cut in 1,000 Jobs
Gannett, the largest newspaper chain in the country, is preparing to trim 3 percent of its workforce — or 1,000 employees — through cuts and attrition.
Gannett vp of Corporate Communications Tara Connell confirmed the reductions to E&P Thursday afternoon, adding that decisions on staff cuts would be made at each property based on financial targets and performances. The McLean, Va.-based company publishes more than 80 dailies, including USA Today, and 900 non-dailies.
Gannett corporate is expected to review and approve the decisions.
The Gannett Blog, run by former Gannett editor and reporter Jim Hopkins from Ibiza, Spain reported Wednesday that he obtained a memo from a staffer at The Daily Times in Salisbury, Md., about the move.
Daily Times Publisher Rick Jensen wrote in a memo: “Across Gannett’s Community Publishing division, about 1,000 positions will be eliminated — about 3% of the workforce. Of the 1,000 positions, about 600 employees will be laid off.”
A call placed to Jensen was not immediately returned.
Jensen wrote in the memo: “Gannett has set payroll expense reduction targets for us and all other newspapers in the U.S. Community Publishing division, necessitating the reduction in positions. The targets were set based on our financial performance and previous reductions.”
Gannett reportedly plans to offer severance: one week of pay for each year of service (capped at 52 weeks) and medical benefits during the period.
Gannett, long considered the bellwether of the newspaper industry, has been hammered by sinking advertising revenue and a dropping stock price despite its low debt. In August, the company took a $2.8 billion goodwill impairment charge due to the “softening business conditions and a decline in the company’s stock price,” the company said.
