Seattle Times faces 'difficult and painful downsizing'
By Leah McBride Mensching, Monday 31 December 2007 at 17:07 :: Labor & Employment :: #1034 :: rss
Seattle Times Publisher Frank Blethen wrote in what the newspaper described as “an unusually blunt internal memo,” that the publication is facing its “most difficult and painful downsizing” in history, the result of print revenue losses that are expected to reach $33 million for 2007 and 2008.
Blethen also blamed the downturn of advertising revenue shifting to the Internet, writing that “with the company at bare bones, these cuts will hurt deeply going into 2008 and the remainder of the decade.”
The newspaper reported that “senior executives have found ways to shave $21 million in costs for the coming year, but another $6 million in expenses will have to be cut, the memo said. Blethen did not say how those cuts would be achieved,” Editor & Publisher quoted the paper as stating.
However, the Times stated Blethen is committed to maintaining ownership of the newspaper, which is the flagship of The Seattle Times Co., his family's media company. The Blethens own 50.5 percent of the company, while U.S. company McClatchy Newspapers owns 49.5 percent.
According to Blethen's memo, his options include “selling the paper, closing its doors or transforming the business 'to a smaller, more focused organization ... For better or worse, my family has chosen door number three.”
Changes to next year's budget are still being finalised, and details will be announced in early 2008, Times spokeswoman Corey Digiacinto told the Times.
“There will likely be some difficult cuts, but this is a temporary situation until we can realign our business model to match the changing revenue picture,” she said.
Revenue from print advertising at the paper is expected to fall below $200 million for 2007, a nine percent decline from 2006, according to Blethen's memo. A similar drop is expected for 2008, he stated.
The paper reported that Blethen anticipates a “'difficult and radical transformation' to a more nimble organization that provides print and online news, information and advertising based on a foundation of journalism and community service.” He stressed in his memo that “We must adapt or die and it isn't an easy challenge.”
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