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Gannett Brings Back Furloughs For Q1; 37 Laid Off At USAT, Magazine

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After a break from furloughs during the second half of the year, Gannett (NYSE: GCI) says that it will require its employees to take five days off without pay in Q1, according to a memo by Bob Dickey, president of the company’s U.S. Community Publishing unit (via Romenesko). Unlike the furloughs earlier this year, the mandatory unpaid leave is not companywide. Staffers at Gannett flagship USA Today, along with broadcast, are unaffected. Separately, however, USAT will cut 37 positions, according to AP.

The USAT layoffs affect 26 newsroom posts and 11 jobs at USA Weekend magazine. Nearly two months ago, the Audit Bureau of Circulations’ Fas-Fax survey showed that USAT experienced its worst paid circ drop off in 27 years. As a result the paper lost its spot as the number one daily in paid circ to the WSJ. The loss was attributed to the weak travel spending, as USAT has traditionally relied on automatic hotel deliveries to guests. On top of that poor travel market, the Marriott canceled many of its guest deliveries.

SEE ALSO: Earnings Call: Dubow Is Back, But Gannett’s Challenges Remain

Last summer, McLean, Va.-based Gannett said it would cut 1,400 employees—3 percent of its workforce—in the face of ad declines. Since then, rumors have continued to circulate about further job losses, but none have materialized.

In his furlough memo, Dickey said that the company sees some encouraging signs, such as slowing ad declines—that said, Q3 net income fell nearly 47 percent. Still, recognizing the fragility of the recovery, the mandatory time-off is being implemented as part of a “conservative approach toward managing our business.” The furloughs must be taken by March 28.

Dec 1, 2009 4:55 PM ET

Gannett


Posted In: Jobs & Layoffs, Media & Publishing, Newspapers, Companies, Gannett

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