Arlington Hts. Daily Herald cuts

Daily Herald faces another round of cuts

Doug Ray, president and chief executive of parent Paddock Publications, told staffers of the Arlington Heights-based Daily Herald in a memo Wednesday that revenue declines have yet to level off, requiring another round of cost-reductions “to maintain enough profit to satisfy credit obligations and ensure that our newspaper remains strong" in the recession.

The company has eliminated 24 positions, according to Ray's memo. For those remaining, there will be no raises and wages—which have been reduced before—will drop another 5 percent. Employees will have to take one day off without pay each month through July. Night differential is being eliminated, holiday pay reduced and mileage reimbursement drops from 40.5 cents per mile to 30 cents.

Ray noted Paddock’s overall audience was growing, but so was the challenge of increasing revenue through the Internet and other platforms "during the harshest economy since the Great Depression."

While warning staff not to "underestimate the immediate need to weather the economic storm," Ray expressed confidence the company will "emerge not simply a survivor but with a bright future ... different but more focused and in the end better prepared to deal with opportunities that lie ahead."

http://newsblogs.chicagotribune.com/towerticker/2009/03/daily-herald-faces-another-round-of-cuts.html

 

Yikes.

Or sigh.

Not much reaction left in me right now.

 

If you're scoring at home, that's four rounds of layoffs in about the last 18 months at the Daily Herald.

Has any other paper had more in such a relatively short time?

 

This one's a head scratcher for me, and it hits home, too. It's where I got my start as a stringer straight out of school, and some good people who helped me then are still there (I hope).

Since that point (about 15 years ago), the Daily Herald has made big circulation inroads against the Trib out in the northwest and western suburbs, by focusing on local news and sports while the Trib's efforts in both areas have waned.

If the DH can't make money (or enough money in the eyes of the Paddocks) using that strategy, we're all in deep, deep trouble.

I wish the best to everyone in the DH newsrooms.

 

The elimination of the night differential and the nosepicking cut in mileage reimbursement is especially assholish.

 

The paper's newsroom in the past was quite high for its circulation.
The paper does tons of zoning, which can be expensive.
And considering it's the Paddock family's only business, I can see a bad financial situation for the paper.
In the past, the night differential was about $5 a night.

 

The big problem for the Herald is paying off the big printing plant in Schaumburg that replaced the relatively new plant in Arlington Heights.

 

Sounds like this paper might just go away.
Shame on the owners for ruining a great alternative to the Tribune and Sun Times.
Cutting is not the answer you stupid morons in the front office. Why would anybody buy your rag with all these cuts or even read it for free on the Web?

 

These CEOs must get their material from the same place. The language sounds the same everywhere:

While warning staff not to "underestimate the immediate need to weather the economic storm," Ray expressed confidence the company will "emerge not simply a survivor but with a bright future ... different but more focused and in the end better prepared to deal with opportunities that lie ahead."

 

Yes. Yes we are.

 

This is a family-owner paper. There's not diversification. And there's not too much "family" left. The remaining family members could have made a ton years ago if they sold.

The problem was the paper added too much staff over the years. I believe at one point they had a 300-person newsroom for a 150,000 circulation daily. And lots of zoning; at one time some pages would be changed 15 times.