Deep in the Heart of Texas, McClatchy Cuts
Posted March 5th, 2009 at 2:38 PM by Jeff A. TaylorAnd raises prices, the sure sign of dire times.
The Ft. Worth Star-Telegram is laying off about 12 percent of its workforce and enacting wage cuts for those who remain. Although it is not an exact match, the paper is one of the best proxies out there for the Carolinas operations of MNI, the largest of which remain oddly silent about the impending layoffs, furloughs, and wage cuts.
Nothing exact, but the rumors are that the S-T cuts hit 20 percent of the newsroom. That would mean drastic, drastic cuts in either Raleigh or Uptown operations. Interestingly, the cuts came with the announcement of free circ “entertainment” option that is supposed to be highly profitable. Don’t know if that is the plan for Uptown as well, although ramming through those new city regs on distribution of free circ pubs certainly looks even more Orwellian.
Is it my imagination or did the Uptown paper never cover the adoption of those regs? I know there was a pre-emptive story, but no follow up that I saw.
Update: Soooo…they are merging features between Raleigh and Uptown? OK. What does that mean for headcount? And why do I want to read features about Cary? Why do the folks in Cary want to read features about Pineville or Matthews?
Besides, this is not sports, this is not an objective event which requires commentary and coverage. Features are much more subtle and harder to quantify. I know, I always sucked at them. Still awaiting the layoff news.
Update II: McClatchy Watch notes that the new unit will be led by Linda Williams, who got into quite a dust-up with a blogger last fall.
Update III: Jon Ham files the changes under “deck chairs, rearranged” and moves on.
March 5th, 2009 at 3:22 pm
You are correct that there was no follow up in the paper itself regarding the new newspaper racks which the taxpayers are going to be funding to the tune of $250K+. Mary Newsom mentioned it offhandedly in her blog, saying that the new racks were approved without debate and with a lone dissenting vote (Warren Cooksey).
MNI is at 38ยข a share right now, a record low. It seems obvious that they are not going to be able to rehabilitate their stock price in time to satisfy the NYSE, which has them on double-secret delisting probation right now until early August, when I expect they’ll be formally delisted unless something miraculous happens.
Does it seem possible that the two Observers might merge into a single “Carolina Observer”? They already do so much content-sharing that beyond the strictly local stuff, there’s not a whole lot of difference between them. They could eliminate a lot of staff and save a lot of money if they did this. Ultimately, it’s still polishing the brass on the Titanic.
Whatever happens, though, I will say this: The longer we go without an announcement from the CO about layoffs, the uglier the layoffs are going to be.
March 5th, 2009 at 3:54 pm
The thing about the N&O is that SO much of what they do turns on being THE paper of state government — that and sending tons of circ points east of the dome. I don’t think they could ever give that up.
But at the top — why do they need two fantastically well compensated publishers? We’re talking enough money for 6, 7, 8 reporters out of that kind of compensation. And imagine what is taking so long is that existing division of labor between the two papers across shared beats makes cuts VERY hard to figure out.
Take sports beats — how many college beat writers do you NEED if you are facing bankruptcy? And don’t forget MNI owns the Chapel Hill paper and the Rock Hill paper.
It’s all ultimately on the yahoos in Sacramento who had no idea they’d have to move this fast to rework their business model.
I guess it is still possible that the Carolinas ops could be sold off to someone, but not for another 2Qs and the economy starts to turn. I think it is even too late to go to 3-days a week.
March 5th, 2009 at 5:27 pm
The MINUTE the CO breaks 7 days a week they get a HUGE MIDDLE FINGER from their subscriber base. INSTANTLY. Are you listening, Ann? In. Stant. Ly.
March 5th, 2009 at 7:56 pm
It’s sad, but I only get the CO now for two reasons.
Coupons, and something to put under cars when I change the oil.
It might be three reasons if we get a new puppy for the kids.
March 6th, 2009 at 11:52 am
Rob, Coupons.com is a good place to get coupons. And Creative Loafing makes a nice oil catcher/puppy poop catcher after you’re done reading it. There is no need to buy the CO purely for those functions.