Gannett offers buyouts as part of layoff

Posted by Leah McBride Mensching on November 6, 2008 at 3:32 PM

Gannett Co. Inc. announced late last month it would lay off another 10 percent of employees in its local newspapers division in early December. This came after a 3 percent cut in August.

Initially, Gannett said all job cuts would be involuntary, BusinessWeek reported at the time. Now, however, the company has told employees they can apply for voluntary buyouts, according to memos e-mailed to employees.

Former Gannett editor and reporter Jim Hopkins reported in his independent blog that papers making the offer to employees on Tuesday and Wednesday included the Green Bay Press-Gazette in Wisconsin, the Democrat and Chronicle (Rochester, N.Y.), The Courier-Journal (Louisville, Ky.) and The News Journal (Wilmington, Del.).

At the Des Moines Register (Iowa), Publisher Laura Hollingsworth broke the news to employees Tuesday evening as they were buckling down for a late night of election coverage.

Hollingsworth's e-mail, obtained by SFN, states:

All:

As you are well aware, the continuing decline in the economy overall and the business conditions affecting our newspaper in particular are requiring a reduction in our expenses. You have heard recently that across the Community Publishing Division, newspapers will be reducing payroll expenses by approximately 10%. Of course, those whose jobs are eliminated will receive severance, which will be 1 week of pay for each completed year of service, with a minimum of 2 weeks severance and a maximum of 26 weeks severance.

We have had a few employees inquire whether there is an option to be voluntarily considered for this severance. Therefore, I wanted to let you know that if any Register employee wishes to be voluntarily considered for this severance, you may submit your name to Joyce Ray in our Human Resources department no later than noon on Tuesday November 11, 2008. Job eliminations are expected to take place in early December, although special circumstances may dictate deferring the effective date a few weeks. Any employee volunteering for this severance would receive the same severance and should expect to depart along the same timetable. Of course, we must also work to preserve our operational strength as we go forward with this process, so I cannot guarantee that anyone who volunteers will be accepted, but your offer will seriously considered.

I know this is a difficult time for us all. Please let me or Joyce, or your department head, know if you have any questions or would like to discuss further. Thanks, LH

Gannett is the largest newspaper publisher in the United States, and on Tuesday Chief Executive Craig Dubow announced he would take a 17 percent pay cut (US$200,000) from his $1.2 million salary beginning now, through 2009.

In the quarter from July to September, Gannett announced revenue from its publishing business dropped almost 18 percent compared to the same quarter in 2007, BusinessWeek reported.

"As all of you are painfully aware, the fiscal crisis is deepening and the economy is getting worse," Robert J. Dickey, president of Gannett's U.S. Community Publishing division, stated in a memo obtained by the Associated Press last week. "Gannett's revenues continue to be severely impacted by this downturn, and our local operations are suffering."