Recent layoffs at newspaper chain Gannett (GCI) haven't been enough to fix a failing business model getting hammered in a miserable economy. Next cost-cutting measure: All non-union employees will have to take five business days off sometime in the first quarter.
Editor and Publisher has a copy of CEO Craig Dubow's company-wide memo announcing the news:
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Today Gannett is implementing a furlough program across all U.S. divisions and at corporate headquarters. This means that most of our U.S. employees - including myself and all other top executives - will be furloughed for the equivalent of one week in the first quarter. This furlough will be unpaid. Unions also will be asked to participate.
We are doing this to preserve our operations and continue to deliver for our customers while confronting the issues raised by some of the most difficult economic conditions we have ever experienced.
After much consideration, we decided a furlough program would be the fairest and least intrusive way to meet these fiscal challenges in the first quarter, which is traditionally the lightest time of the year. We sincerely hope this minimizes the need for any layoffs going forward.
As the day goes on, you will be receiving information from your division presidents explaining the program, including some FAQs to help answer any of your questions and address your concerns about pay and benefits.
We have made some very difficult decisions this past year, all with the goal of keeping Gannett strong and preparing for the future. I understand I have asked a great deal of you, and I regret adding to your burden with this program.
But my sincere hope is that this step removes the need to do anything more drastic, and that business conditions improve. As always, I thank you for your patience and loyalty to Gannett.
See Also:
Gannett CEO: Sorry For The Layoffs, I'll Take A 3% Pay Cut
Gannett Shrinks Workforce By 1,000, Stock Goes Up
Gannett Investing $10 Million In Live Streamer Mogulus
