'Clarion-Ledger' To Cut 5% of Staff

By: E&P Staff The Clarion-Ledger in Jackson, Miss., has to eliminate 20 positions, Publisher Larry Whitaker wrote to staff in a memo posted on Romenseko. Whitaker cites the slowdown in print AND online advertising as the reason for the move.

"While you might have read about staff reductions at other newspapers, we have, up to this point, made tough business decisions to avoid having to take those actions here," wrote Whitaker. "I regret to inform you that we can no longer keep our name off the growing list of newspapers that have reduced staff or are in the process of doing so. The unstable market, higher fuel costs, big spikes in newsprint costs, and a challenging advertising climate have made that impossible."

The cut amounts to 5% of the workforce of the Gannett-owned newspaper. The memo did not address which positions are affected or if those employees will receive severance.

The memo from Whitaker follows:

August 1, 2008

To: Employees of The Clarion-Ledger

From: Larry Whitaker, President and Publisher

The economic downturn affecting much of the country is taking a heavy toll on the local economy. To be direct, it will lead to significant changes in the way we do business at The Clarion-Ledger. In nearly every advertising segment, our customers are reporting difficult times for their businesses. They are cutting back on print and online advertising, which has a direct impact on our business. These economic forces, which are out of our control, make it necessary for us to reduce our workforce.

You've seen the result of the economic downturn in your personal finances -- higher gas prices, double-digit energy bill increases and steeper prices at the grocery store. Those changes have forced many of you to make changes in your household spending. We're facing a similar situation at The Clarion-Ledger. We have to reduce our spending to the current size of our business.

While you might have read about staff reductions at other newspapers, we have, up to this point, made tough business decisions to avoid having to take those actions here. I regret to inform you that we can no longer keep our name off the growing list of newspapers that have reduced staff or are in the process of doing so. The unstable market, higher fuel costs, big spikes in newsprint costs, and a challenging advertising climate have made that impossible.

I'm sure you're wondering how you will be affected by the changes that I referenced earlier. For several weeks we have frozen almost all open positions in an effort to reduce payroll costs. Your department heads have been instructed to re-evaluate the structure of their departments to ensure that the priority work gets done. Am I saying that we will have to do the same or more with less? Unfortunately, the straight answer to that question is yes. Having fewer people, however, should not be a reason to offer poor customer service or shirk our public service journalism responsibility. In fact, it is imperative that we do the opposite.

In addition to freezing open positions, we will eliminate 20 jobs from the organizational structure of The Clarion-Ledger, clarionledger.com and its family of products. This is roughly 5% of our total employee count. I realize how hard this may sound. The employees who will no longer be with us are good people and fine employees who have served the company well. The decision to eliminate these jobs was very difficult; but, we can no longer operate with the same number of people while our business gets smaller in this down economy.

Some experts are calling this year the worst the newspaper industry has ever seen. Up to now, the Jackson market has been good to us. Its overall health has enabled us to operate with virtually the same level of staffing while other newspapers have gone through the job elimination process multiple times. We can no longer shield ourselves from the economic reality of the times. The fact that we've been able to withstand this level of cuts for this long is testament to the work you produce for our customers and the results those customers have grown so accustomed to receiving.

While I know this letter addresses serious business changes, I remain optimistic about the future of our business. The Clarion-Ledger and its family of products are remaining market leaders in every statistical category. But, many of the challenges we face in this troubling economy could not be predicted.

I am confident, however, that what we offer in print and online has tremendous value for our customers, both readers and advertisers. I am also confident that the metro Jackson area, with new development such as a new convention center, hotels and shopping centers, the expansion of the medical community and the positive of having state government in our community will allow us to rebound faster than other parts of the country. Unfortunately, we must act accordingly to today's reality. I'd like to thank you in advance for your professionalism and maximum efforts during these difficult times.

Sincerely,


Larry K. Whitaker