Gannett to cut 1,000 newspaper jobs: memo

SAN FRANCISCO (Reuters) –

Gannett Co Inc (GCI.N) plans to

eliminate 1,000 positions from its local newspapers around the

U.S. because of declining advertising and circulation revenue,

and may cut more if those conditions persist.

The largest U.S. newspaper publisher said the cuts equal

about 3 percent of the positions in its Community Publishing

unit, according to a memo obtained by Reuters on Thursday. The

unit accounts for the vast majority of the company’s

newspapers, except for USA Today.

About 600 people probably will be laid off as part of the

cuts, the memo said. The remaining cuts will come from

retirements, resignations and other vacancies that will go

unfilled.

Gannett, which is based in McLean, Virginia, sent the

undated memo to publishers of its more than 80 community

newspapers, asking them to notify employees by August 15.

The company, which publishes USA Today, is the latest U.S.

newspaper publisher to slash headcount because of falling

advertising and circulation revenue.

McClatchy Co (MNI.N), The New York Times Co (NYT.N), The

Washington Post Co (WPO.N) and Tribune Co all have cut their

employee rolls, either through buyouts or layoffs.

U.S. newspaper publishers have been battered by a steep

fall in classified advertising revenue brought on by wider

economic woes spurred by the housing crisis as well as a steady

migration of readers seeking free news on the Internet.

At Gannett, publishers are getting a reduced payroll dollar

amount that they must meet based on the unit’s financial

performance and previous reductions, and have several options

to reach their targets such as leaving open vacant positions,

normal resignations and retirements, and layoffs.

“We would prefer no more reductions, but… we must keep

expenses in line with revenue,” the memo said. “If advertising

and circulation revenues continue to decline, further payroll

reductions may be necessary.”

At the Gannett-owned Courier-Journal in Louisville,

Kentucky, Publisher Arnold Garson told employees that 15 of

them will lose their jobs, and added that the company does not

see the revenue declines easing any time soon, according to an

article posted on the paper’s website.

Gannett publishes newspapers in more than 30 states,

including The Arizona Republic, The Green Bay Press-Gazette in

Wisconsin, The Honolulu Advertiser in Hawaii and The

Courier-Post in southern New Jersey.

Gannett shares rose $1.56, or 8 percent, to $20.82 on the

New York Stock Exchange. Many other newspaper shares rose as

well on Thursday.

(Editing by Derek Caney)