Tribune Co. Announces Plans for Job Cuts

By: E&P Staff As rumored, the Tribune Co., President Jack Fuller announced in a memo on Monday, will go forward with "reducing expenses across the publishing group through a series of cost saving initiatives." Fuller said, "We're taking this action because revenue growth at some of our newspapers has not materialized as fast as we had originally planned."

Some reports place expected editorial layoffs at about 60 (and 120 overall), with The Sun of Baltimore and Newsday of Melville, N.Y., also impacted. Staff reductions may come through voluntary buyouts.

Earlier in the day, Tribune reported its summary of revenues and newspaper advertising volume for the period ended May 23, 2004, announcing that consolidated revenues for the period were $467 million, up 3.2% from last year's $452 million.

Based on current trends, the company expects consolidated revenue growth for the full year to be in the 4% range. "Slower than anticipated growth within the publishing group will be offset by expense reductions," a company press release noted. "Actions being taken include staff reductions, newsprint conservation programs and reduced spending levels in all departments.

"Although help wanted advertising is improving month-over-month, and preprints year-to-date are delivering strong growth, other advertising categories are not meeting the aggressive plans we had for the year," said Fuller in the release. "The shortfall is limited to a few newspapers, including the Los Angeles Times."

A letter from Washington Bureau Chief Doyle McManus to his staff, posted on the Web site L.A. Observed on Monday, noted that, "Advertising revenue is said to have tanked in L.A. during the first half of the year."

In his memo, Fuller said, "Failing to react to the revenue shortfall in publishing would cause a drag on the earning of Tribune Company as a whole. ... Additionally, next year we expect to face continued expense pressure due to pension and retirement costs and a possible increase in the price of newsprint."

McManus, in his memo, said that Newsday and the Baltimore Sun "are facing staff reductions" as well. He didn't know how many positions would be cut or how "generous" buyout offers would be. But he noted that the newspaper "has weathered buyouts before ... and come out fine on the other end. It's not a fun process; but if it's done carefully and well, it doesn't weaken the paper in the long run."

Publishing revenues in May were $325 million, 2.7% higher than last year's $317 million. Advertising revenues increased 4.1% to $255 million, compared with $245 million in May 2003. Total advertising inches were up 3%, while preprint pieces increased 9%.