BUYOUT ALERT! BUYOUT ALERT! Attn: Florida and Michigan job-seekers

[MGoBlue]

Not that the Dallas Morning News began the trend, but two new buyout alerts have come to my attention this week.

The South Florida Sun-Sentinel in Fort Lauderdale is looking for 30 newsroom employees to step up to the plate and leave early. If they don't get the 30, they will cut to reach that figure.

Also, The Ann Arbor News is looking for 40 building-wide to take an early retirement (or, just more than 10 percent of its entire workforce). No addition news on what happens if it doesn't reach its target. But with Michigan's economy (and news of the city losing its largest tax revenue in Pfizer's departure), this isn't surprising.

Be wary, job candidates.

 

[Moondoggy]

There's a bad moon risin'.

 

[Leo Mazzone]

Just as an addendum, although this could be a d_b:

Topic: Memos Sent to Romenesko
Date/Time: 2/7/2007 2:18:51 PM
Title: Memo on Florida Times-Union cuts
Posted By: Jim Romenesko

February 7, 2007

Dear Fellow Times-Union Employee,

As you may be aware we have not started the year on a positive note as far as our revenue goals.

In 2006 we started well with excellent growth in some sectors. Unfortunately it was too good to last and in the last quarter we began to fall far short of our revenue budgets and finished poorly.

This isn't a problem unique to Jacksonville or to Morris. You are aware of the downturn in real estate and the problems facing the auto industry. These have a direct bearing on our revenue. Additionally, a downturn in retail has meant less advertising from department stores, and the consolidation of the cellular telephone business has also had a negative impact.

We are taking a number of steps across the company to control our costs, while at the same time seeking new ways to improve revenues.

The following steps are now in effect.

We have a freeze on hiring. We will continue to fill sales positions and other positions which are absolutely critical.

All salary increases have been frozen or delayed.

All departments are reviewing their budgets for savings and they will report those to me no later than Friday.

We will reduce travel and entertainment and all other expense wherever feasible.

I know these actions will create hardships for some of you and will require additional work for most employees. It is my sincere hope that our business will improve quickly. I believe our economy is strong, but several sectors which affect key advertisers are very weak at the moment.

We all know that we have strong products that are important to readers and advertisers. All of you play a part in providing those products. I want to thank you for the contributions you have made and I look forward to working with you to further strengthen our product line and our company.

I will keep you informed as we progress.

Sincerely,

[Publisher] Carl Cannon

 

[Herbert Anchovy]

Happy New Year!

 

[Ghost of Biff Pocoroba]

And the hits just keep on a' comin'. This hit parade's been on the air since 2000, at least, and it ain't stoppin' 'til the fat lady sings.

 

[subhead]

We have a freeze on hiring. We will continue to fill sales positions and other positions which are absolutely critical.

Something tells me the people who put things around the ads aren't "absolutely critical."


EDIT: Obviously that quote is from the FTU note, not Leo.

 

[JBHawkEye]

It's not, "We're not making money." It's "We're not making enough money."

 

[miamiheraldchick]

Are we sure the Sun-Sentinel wants to lose 30 people? The memo refers to 15.

Here is the memo from South Florida Sun-Sentinel editor Earl Maucker:

".... During the past few months, I've had a numberof newsroom employees ask about the possibility of an early retirement or
voluntary separation package, so we are going to accept applications.
Those eligible must be 55 years-old or older and have at least 10 years ofservice with the company. Roughly 15 applications will be accepted. ......"

 

[MGoBlue]

You may be correct, miami, though the email we got this week was 30.
Might it possibly be 15 in newsroom and 30 total in the building?

Either way, it's not good.

 

[Write-brained]

God-damned 20 percent profits! :

 

[Moderator1]

Business side experts: Detail what a buyout like this does for a company? Does it make things better? Is it a sign that things are not good, are terrible, what?

 

[Michael_ Gee]

As a bought out person, I know the theory works like so. The buyout results in a huge one-time, one-quarter loss to the balance sheet. However, Wall Street looks past the charge in anticipation of future, happier balance sheets minus all those employees.
In practice, it seldom works. Isn't working at Ford, sure as heck isn't working at the Boston Herald. Businesses turn around for non-cost related reasons, such as making a car people actually want to buy, or figuring out how to make money off on-line advertising. Buyouts are merely a way of appeasing the 28-year old Wall Street thugs who're blowing their annual bonuses at strip clubs.
Buyouts are a very bad sign. They speak to a company, in whatever field, that has no idea how to grow its business.