More cuts are coming to newspapers owned by GateHouse Media.
Several papers, including the Columbus (Ohio) Dispatch, the Rockford (Illinois) Register Star and the Providence (Rhode Island) Journal are undergoing a round of buyouts as the newspapers’ parent company seeks to offset revenue declines.
Journalists at GateHouse Media who accept the buyout will receive one week of severance pay for every year at the company, according to the buyout offer (below). The deadline to accept the buyout is Aug. 29, and eligible employees will leave the company on Sept. 16.
The company also acknowledged the possibility of layoffs in a informational packet attached to the buyout offer:
While it is hoped that the [buyout] will achieve the desired cost savings and reallocation goals, in the event that a sufficient number of employees do not end up ultimately participating in the [buyout], an involuntary reduction in force may occur.
However, if you decide not to accept the [buyout], your decision to reject the offer and to remain employed by the Company will not be a factor in any selection decisions for subsequent involuntary reductions in force.
While it is hoped that the VSO will achieve the desired cost savings and reallocation goals, in the event that a sufficient number of employees do not end up ultimately participating in the VSO, an involuntary reduction in force may occur.
However, if you decide not to accept the VSO, your decision to reject the offer and to remain employed by the Company will not be a factor in any selection decisions for subsequent involuntary reductions in force.
The offer, from GateHouse Media CEO Kirk Davis, cites “ongoing efforts across our organization to reduce costs” as the primary motive for the cuts:
The action supports ongoing efforts across our organization to reduce costs. While we continue to make progress toward our goal of being revenue positive by 2018 and year-to-date our revenue performance has improved and outperformed our industry peers, we continue to see revenue declines and must align our expenses accordingly.
Poynter requested comment from GateHouse Media and will update this story if a response is forthcoming.
GateHouse Media owns 125 daily newspapers across the United States. Its parent company, New Media Investment Group, has lately embarked on an expansion strategy, purchasing Halifax Media in 2014, the Las Vegas Review-Journal in 2015 and the Fayetteville Observer in 2016.
Several of the newspapers affected by the latest round of buyouts have been downsized before. The Providence Journal offered buyouts to employees earlier this year and in 2015. In 2014, after New Media Investment Group acquired the Providence Journal, 22 employees were laid off. The Columbus Dispatch offered employees buyouts in 2015 and laid off 45 employees in 2009. In 2008, the Register Star targeted about 20 employees with buyouts.
Here’s the buyout offer:
