Gannett is examining the possibility of making cuts across its company — and that includes possible layoffs at The Tennessean and several other papers around the state.
Maribel Wadsworth, president of USA Today Network and publisher of USA Today, told employees during a company-wide conference call Tuesday that digital revenue is not replacing declining print revenues, and some belt-tightening will be coming in the new year.
“As we continue this transition ... it's important to understand … that it will require us to think about our overall cost structure in alignment with profitability,” Wadsworth told employees, according to a description of the call that was provided to the Scene. That’s corporate-speak for cuts, likely to Gannett’s print portfolio.
“Going forward, we will be a smaller company,” she continued, noting that monetization has not been strong on mobile devices and that Gannett properties need to “deepen engagement” with mobile readers.
Gannett’s third-quarter results disappointed Wall Street as the company announced lower-than-expected earnings last week. Several analysts have downgraded their ratings for Gannett stock.
In a related move, Gannett CEO Bob Dickey announced he will retire by May.
Wadsworth told listeners that the company cannot continue many of the products it produces, highlighting non-daily print publications. In Middle Tennessee, Gannett publishes weekly or twice-weekly content in Dickson, Robertson, Sumner and Williamson counties. Company-wide, she said, the company has reduced the amount of underperforming content.
“It’s gonna feel rocky at times," she said. "It just is. We just have to be very clear-eyed about that.”
Currently, the company is waiting on a Dec. 10 deadline for buyout volunteers. Eligible staffers must be Gannett employees older than 55 with at least 15 years of experience. That final number may affect the number of cuts after Jan. 1.
“There is no plan for a mass layoff before Christmas,” Tennessean staffers were told.
When asked about the company’s offering of early-retirement packages and whether it is possible for someone who has turned down the early-retirement package to be let go in the future, Wadsworth said that it was a possibility.
