McClatchy layoffs?

Why all these cuts in May? Has anybody done a check of who is getting laid off? Young-uns? Old folks? Which chain is going to go all online all the time first with no more print? It certainly is a slow process. Funny thing is when one of the worst chains (McClonigal, Gannett, Gatehouse) goes all online, I'd estimate there would be 50 percent staff reduction before the first all online edition. All those designer hubs could get rid of almost everybody employed there as well. Thing is when it's all online, after that first round of cuts, that will be it. There won't be any more cuts. You need a couple writers and one editor to put out an online edition in a major metro. So what will the Gatehouse strategy ultimately be? When does Gatehouse sell? Because at some point they will have bled the news organizations totally dry and there will be no more cuts that possibly can be made. Plus nobody will ever buy online advertising. So what is Gatehouse's ultimate goal? At some point they have to pull out. Maybe sell locally? Somebody make a modest investment toward having an internet site called the Denver Post?

 

In the case of McClatchy layoffs are happening because first quarter revenues are down 10%. Advertising was down by close to 17% and audience revenue (i.e. subscription revenue) 5.6%. So people are going to get fired at McClatchy.

Gatehouse is run by Fortress. Fortress sold off almost all their stock but retained a management contract that gives them a bonus when they buy a paper for less than 10 times cash flow. Since newspapers today sell for about four times cash flow Fortress gets a bonus they buy a paper. Fortress really doesn't give a dame about the survival of Gatehouse. They have pulled their stake out and plan to buy and buy until there is no more money to be made and they close it all down.

People are always welcome to disagree with me but please refer to the following article:

https://www.bizjournals.com/boston/blog/mass_roundup/2013/09/gatehouse-bankruptcy-and-spinoff.html

and the 10-K's of the company post bankruptcy. I found the 2013 10-K and the 2016 10-K where the management agreement is included as particularly enlightening. Then explain why my conclusion is incorrect.

 

Last day on the payroll in Sacramento:

 

And (sigh) another farewell. If Kawakami's allowed to include the Kings in his Athletic domain, she'd be a natural.

From coffee with Ali to covering the Dream Team, Ailene Voisin reflects on career highlights

 

Really good farewell column, for a change. Thanks for posting.

 

The Bee laid off the sports editor? I wonder if they are just going without one.

 

Tough day for sports columnists -- I assume the Cleveland Plain Dealer columnist also was laid off?

 

If we go back to 2010 - it isn't like there is any more internet than there was back then - and I don't think newspapers have lost 10 percent of the subscriber base each year due to death - it's just not a good product.
It is really arrogant for some of these companies to expect people to continue to pay for print subscriptions or advertising, when they are putting so little effort into the product.

 

Thank you Lancey. So if I read this right at some point Fortress will just inform the newspaper that it does not exist? They close what down? You mean the last 2-3 people standing? How did this happen? The ultimate goal then is to have nothing. Let's use Denver as an example. Just keep cutting people and cutting people and at some point before they go all internet just end the operation? WOW.

 

Took a buyout a source tells me.

 

This morning in the Fort Worth Star-Telegram the lead sports story was ... a 2019 mock NFL draft.

C’mon man.

 

I don't know - Cowboys might be drafting pretty high.