Santa Rosa newspapers to slash payroll 10%

Posted by Erina Lin on August 6, 2009 at 11:17 AM

Two publications owned by the New York Times Co., The Santa Rosa Press Democrat and the affiliated weekly Petaluma Argus Courier, are going to cut payroll by 10 percent next year, in order to "bring costs in line with lower ad sales," said Publisher Bruce Kyse Tuesday.

According to the Santa Rosa paper, the cutbacks could include pay cuts, buyouts, and, if needed, layoffs, said Kyse in a series of meetings with employees.

"Unfortunately, the economic tide is hard to swim against. We are faced with economic realities, and we have to take steps to deal with them," according to Kyse, San Francisco Business Times reported.

Just like other papers nationwide and in the Bay Area, these two papers experienced display and classified advertising slowdown due to the economic slowdown, the online migration of classifieds and other advertising, as well as changing reading habits.

"The cuts will impact union and nonunion workers in all departments at the papers," said Kyse in the Press Democrat story.

The Santa Rosa paper has 325 employees, while the weekly Petaluma Argus Courier has 16.

The moves are being made in order to "lower 2010 revenue and respond to local market conditions." It will not affect other Regional Media Group properties owned by the New York Times Co, including The North Bay Business Journal, the Press Democrat reported.

In addition, managers at the Press Democrat will face salaries cut by 5 percent starting Jan. 1. Other nonunion staffers will receive a 3 percent pay cut, after a 2.5 percent salary reduction about six months ago, according to San Francisco Business Times.

The New York Times reported last quarter ad sales at its regional papers down 33.4 percent, versus its own average year-over-year ad sales declined 31.7 percent.