Gannett to cut US newspaper workforce by 1,000

by Dan Leahul, Brand Republic 15-Aug-08, 15:35

LONDON - Newspaper giant Gannett is to cut 1,000 positions from its US local newspapers due to declining circulation and ad revenue.

Gannett, the largest newspaper publisher in the US, informed employees via memo that the reduction would be partly achieved by retirements, resignations and unfilled vacancies.

However, it warned that at least 600 redundancies would be necessary across their 85 dailies and more than 900 non-daily publications.

The cuts equal about 3% of the workforce in the company's Community Publishing unit.

Gannett owns one of the UK's largest regional newspaper publishers, Newsquest, which employs nearly 8,000 people across the country.

No one at Newsquest was available to comment whether the layoffs will affect any UK employees.

The event follows a string of bad news for US print media organisations this week, including Tribune Co's announcement of a $4.8bn second quarter loss and American publishers McLatchy installing an across-the-board wage freeze amid various newspaper title fire-sales and near sweeping declines in circulation.

The Gannett memo said: "We would prefer no more reductions, but we must keep expenses in line with revenue. If advertising and circulation revenues continue to decline, further payroll reductions may be necessary."

The company also owns USA Today, which is the largest newspaper in the US by circulation. USA Today will not be affected by the layoffs.