By: Joe Strupp
GateHouse Media New England, which publishes more than 100 community newspapers in Eastern Massachusetts, announced a “temporary” pay cut, according to a staff memo first posted on the Beat the Press Web site.
The related story also cites a report in GateHouse’s Patriot Ledger of Quincy, which says salaries will be reduced by an average of 7.75%, with the lowest-paid employees receiving a 7% cut and the highest paid getting hit by up to 15%.
“The goal is to save $2.5 million this year,” the story says. “The pay cuts would be reversed if and when the recession-battered advertising market recovers.”
In a company-wide e-mail, GateHouse Media New England president and chief executive Rick Daniels explains the move: “Why are we taking this step? Why now? It’s really pretty simple: As much as we have done everything in our collective power to blunt the negative effects the economic crisis has had on advertising, virtually ALL major metropolitan markets have been hit by advertising declines that have soared to the mid-twenties to mid-thirties percent (compared to prior year months) since early January. These revenue declines have dramatically hit the cash flows of most publishers.”
The cuts are due to take effect June 1.
The entire report can be found here.