Mom
Jul 1st 2009, 09:03 AM
Does anyone know whether Gannett's tv stations will be included among the cuts? Anyone here affected?
Gannett (http://online.wsj.com/public/quotes/main.html?type=djn&symbol=gci) Co., the largest U.S. newspaper publisher by daily circulation, will cut between 1,000 and 2,000 jobs out of its 41,500-person work force in response to continuing revenue declines, according to a person familiar with the company's thinking.
Gannett, which like most newspaper publishers is suffering from steep advertising declines, cut about 10% of its work force last year. The McLean, Va.-based company reported net income fell 60% in the first quarter.
The cuts will come from the U.S. Community Publishing division, which consists of Gannett's more than 80 local dailies, the person said, and won't affect the company's flagship, USA Today. The exact number of jobs to be cut wasn't clear. The cuts will be disclosed in the next few days.
Gannett, which like most newspaper publishers is suffering from steep advertising declines, cut about 10% of its work force last year. The company was expected to make additional cuts after a dismal first quarter, when net income fell nearly 60% from a year earlier as publishing ad revenue declined more than 34%.
The impending move, which follows several aggressive cost-cutting efforts by Gannett over the past year or so, reflects the gloomy near-term outlook for an advertising recovery. The publisher cut 4,600 jobs last year and followed that by requiring most of its remaining employees to take unpaid leave in the first and second quarters.
Gannett's financial troubles aren't unique in the battered newspaper industry, but they come as the publisher has endured a rare stretch of instability. In late March, USA Today publisher Craig Moon resigned suddenly. In June Gannett disclosed that Chief Executive Craig Dubow will be away from the company for several months as he recovers from back surgery. Gracia Martore, the chief financial officer, is serving as the company's principal executive officer.
Gannett in late April named former Detroit Free Press publisher Dave Hunke to succeed Mr. Moon as president and publisher of USA Today. Mr. Hunke takes over the flagship during what may be the most challenging period in its 27-year history. Ad revenue at the paper fell 34% in the first quarter from a year earlier, and circulation declined by more than 170,000 in the six months through March. Much of USA Today's circulation comes from distribution in hotels, which have significantly cut back delivery of the paper to guests.
Gannett, which reports second-quarter earnings in mid-July, had $3.7 billion in debt at the end of the first quarter.
Gannett (http://online.wsj.com/public/quotes/main.html?type=djn&symbol=gci) Co., the largest U.S. newspaper publisher by daily circulation, will cut between 1,000 and 2,000 jobs out of its 41,500-person work force in response to continuing revenue declines, according to a person familiar with the company's thinking.
Gannett, which like most newspaper publishers is suffering from steep advertising declines, cut about 10% of its work force last year. The McLean, Va.-based company reported net income fell 60% in the first quarter.
The cuts will come from the U.S. Community Publishing division, which consists of Gannett's more than 80 local dailies, the person said, and won't affect the company's flagship, USA Today. The exact number of jobs to be cut wasn't clear. The cuts will be disclosed in the next few days.
Gannett, which like most newspaper publishers is suffering from steep advertising declines, cut about 10% of its work force last year. The company was expected to make additional cuts after a dismal first quarter, when net income fell nearly 60% from a year earlier as publishing ad revenue declined more than 34%.
The impending move, which follows several aggressive cost-cutting efforts by Gannett over the past year or so, reflects the gloomy near-term outlook for an advertising recovery. The publisher cut 4,600 jobs last year and followed that by requiring most of its remaining employees to take unpaid leave in the first and second quarters.
Gannett's financial troubles aren't unique in the battered newspaper industry, but they come as the publisher has endured a rare stretch of instability. In late March, USA Today publisher Craig Moon resigned suddenly. In June Gannett disclosed that Chief Executive Craig Dubow will be away from the company for several months as he recovers from back surgery. Gracia Martore, the chief financial officer, is serving as the company's principal executive officer.
Gannett in late April named former Detroit Free Press publisher Dave Hunke to succeed Mr. Moon as president and publisher of USA Today. Mr. Hunke takes over the flagship during what may be the most challenging period in its 27-year history. Ad revenue at the paper fell 34% in the first quarter from a year earlier, and circulation declined by more than 170,000 in the six months through March. Much of USA Today's circulation comes from distribution in hotels, which have significantly cut back delivery of the paper to guests.
Gannett, which reports second-quarter earnings in mid-July, had $3.7 billion in debt at the end of the first quarter.