Going into 2009’s second half, news that Gannett Co., the nation’s largest newspaper chain that includes flagship USA Today, is set to eliminate more jobs indicates a rocky road ahead for the newspaper industry in the U.S. and likely further slide in circulation and revenue, feels Grumpy Editor.
While official word on staff reduction is expected in a few days, The Wall Street Journal indicates Gannett will cut 1,000 to 2,000 jobs out of a 41,500-person work force, mainly from its U.S. Community Publishing Division that oversees local dailies.
The New York Times cites a former Gannett editor’s blog saying Gannett will slice 4,500 more newspaper jobs in the U.S.
The company’s U.S. and British newspaper divisions eliminated more than 10,000 jobs in 2007 and 2008, including about 2,000 layoffs last fall, reminds The Times.
Gannett’s first quarter net income, affected by steep advertising declines, fell nearly 60 percent from the like year-ago quarter, as publishing ad revenue fell 34 percent. Second quarter numbers are expected mid-month.
What does this mean to the newspaper business?
The outlook is gloomy.
With rising local, state and federal taxes --- along with higher utility rates and other looming costs --- putting a squeeze on businesses and consumers, coupled with advertising budgets being trimmed or shelved, even more newspaper subscription and staff cuts appear likely.
Dwindling circulation means chopping ad rates. That results in even less revenue, leading to further payroll reductions.
From the editorial side, fewer reporters available to keep eyes on local and national officials, cover press conferences with tough questions in seeking information not contained in speeches or news releases, and other events that affect pocketbooks, will result in more sneaky happenings.
That’s another factor making editors and publishers uneasy these days.
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