By: Jennifer Saba James Moroney, publisher of The Dallas Morning News, addressed the paper's management yesterday morning about the 150 jobs slated to be cut by the end of October. Belo Corp., owner of the Morning News, announced yesterday it was eliminating 250 jobs company-wide.
Moroney emphasized the staff reduction had nothing to do with the recent circulation crisis at the paper, though he did admit it was "an added factor," according to a memo posted at the The Poynter Institute's Romenesko site based on notes taken by an editor who attended the meeting.
Instead, Moroney pinned the move on the Morning News' four years of flat revenue growth, a drop in help-wanted classified ads by 20% since 2001, and a rise in newsprint costs. He also said that the paper is 35% less profitable than in 2000, though still profitable.
"A perfect storm has been brewing," he said, according to the memo. "We are operating in a fundamentally different business environment." A Morning News spokesman had no comment.
"In many ways I feel I have let all of you down," Moroney reportedly said. "I am really sorry I wasn't able to keep this day from happening."
The company will save an estimated $8 to $10 million with the cuts, which represents 7% of total labor costs. The paper employs 2,200 people.
The layoffs will hit all departments and will affect managers and non-mangers alike. No early retirement packages will be offered. The paper will extend one week of severance for every year of service (up to 26 years) and health benefits through the end of November, according to the memo.
The company will continue to invest in Quick, al dia, and the paper's Collin County edition. Yesterday, Belo announced changes in operational strategy, which included $10 million earmarked for marketing efforts.
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