USA Today publisher Gannett cuts 700 jobs

Jun 21, 2011
A USA Today newspaper is seen on a stand in 2008. Gannett, the largest US newspaper chain and the publisher of USA Today, said Tuesday it is laying off 700 employees, around two percent of its workforce.

Gannett, the largest US newspaper chain and the publisher of USA Today, said Tuesday it is laying off 700 employees, around two percent of its workforce.

A Gannett spokeswoman said the layoffs did not involve or the Detroit Free Press but were being spread out among the chain's various local newspapers across the United States.

The McLean, Virginia-based Gannett publishes around 80 daily US newspapers and more than 600 magazines and non-dailies.

Like other US newspapers, Gannett has been grappling with declining print , falling circulation and the migration of readers to free news online.

Robert Dickey, the head of Gannett's US Community Publishing division, said in a memo to employees that the were necessary to "align our costs with the current revenue trends."

"As we reach the mid-point of the year, the is not happening as quickly or favorably as we had hoped and continues to impact our US community media organizations," Dickey said.

"While we are seeing improved circulation results and audience growth, weakness in the real estate sector, slow and now softer auto ad demand continue to challenge revenue growth in the division," he said.

"National advertising remains soft and with many of our local advertisers reducing their overall budgets, we need to take further steps to align our costs with the current revenue trends," he said.

Dickey said each local publisher would decide how many employees to let go but the total would be approximately 700 employees.

Gannett's net profit fell 23 percent in the first quarter of the year as a double-digit boost in digital revenue failed to make up for a continued slide.

Revenue was down 3.7 percent to $1.25 billion in the quarter.

Gannett shares gained 2.91 percent, or 40 cents, on Tuesday, to close at $14.16.

Explore further: Blackberry posts 3Q adjusted profit, revenue down

add to favorites email to friend print save as pdf

Related Stories

Gannett net profit down 23 percent on ad slide

Apr 18, 2011

USA Today publisher Gannett said Monday that net profit fell 23 percent in the first quarter as a double-digit boost in digital revenue failed to make up for a continued print advertising slide.

Better ad climate gives Gannett a boost

Apr 16, 2010

An improved advertising climate helped USA Today owner Gannett Co. double its quarterly net profit Friday as credit rating agency Moody's changed its outlook for the newspaper sector to stable from negative.

TV, digital operations give Gannett a boost

Jul 16, 2010

USA Today owner Gannett said Friday that net profit surged in the second quarter on a strong performance from its television and digital properties and an improved print advertising climate.

Gannett to partner with Yahoo on local advertising

Jul 16, 2010

(AP) -- Gannett Co., the largest U.S. newspaper publisher, is partnering with Yahoo Inc. to sell local online advertising. It's a deal that could help Gannett boost revenue as its traditional print business declines.

New York Times net profit dips 26 percent

Feb 03, 2011

The New York Times Co. on Thursday reported a 26-percent drop in quarterly net profit as an increase in digital advertising revenue failed to make up for what it lost in print ads and circulation.

Washington Post stems tide of red ink

Jul 31, 2009

The Washington Post Co. reversed its slide and posted a quarterly profit on Friday despite a steep decline in advertising revenue at its flagship newspaper.

Recommended for you

Sony faces 4th ex-employee lawsuit over hack

58 minutes ago

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

2 hours ago

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

15 hours ago

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

Clooney slams skittish Hollywood after Sony hack

22 hours ago

Film star George Clooney slammed the Hollywood movie industry for failing to stand up against the cyber threats that prompted Sony Pictures to cancel release of the movie "The Interview."

User comments : 2

Adjust slider to filter visible comments by rank

Display comments: newest first

Vendicar_Decarian
5 / 5 (1) Jun 21, 2011
Print is dead.

Monetizing the Internet is proving difficult for those in the news business.

The result is less respectable news either completely manufactured, or heavily spun by Corporate Interests looking to profit by hoodwinking the public.
Deesky
not rated yet Jun 22, 2011
the layoffs were necessary to "align our costs with the current revenue trends."

Translation - no one is buying newspapers anymore and our advertising revenues have tanked, so we need to cut costs.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.