Gannett. | AP Photo/Richard Drew Gannett to lay off two percent of workforce Layoffs come ahead of long-simmering Tronc deal

Gannett, the largest U.S newspaper company, is cutting another two percent of its workforce. That cut, which should total about 350 or more positions throughout the company, was made official in an internal memo (reproduced below) to Gannett employees by CEO Bob Dickey moments ago.

On Friday, POLITICO had reported [“Gannett approaches possible billion dollar deal to buy Tronc – and layoffs, too”] the layoffs and other cost reductions would be announced this week.

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Gannett will announce its third-quarter earnings on Thursday. Company insiders say they won’t be pretty, as print ad revenue losses largely between five and eight percent at many of its more than 100 properties swamp efforts at digital business revenue growth. Even before the Thursday call with financial analysts, investor and financial pressure on Gannett has increased steadily throughout the year. Its share price is down more than 35% as it has bid, over the year, to make one additional large acquisition, that of Tronc, the former Tribune Publishing’s nine newspapers, including the L.A. Times and Chicago Tribune.

Indeed, that acquisition of Tronc, in “final paperwork” for quite awhile, too could well come this week. Internally that means tough optics, as a major newspaper company acquisition gets paired the same week with more staff cuts, including significant ones in at least some newsroom. The company’s execs will say the two are unrelated – noting the larger strategic picture requiring both costs cuts and strategic buys -- but that will be a tough sell.

This news, then, marks a major week in the life of Gannett.



From: A message from Bob Dickey

Date: October 24, 2016 at 11:02:06 AM EDT

Subject: Announcing Critical Moves This Week

Dear colleagues,

I’m writing to share with you some critical moves we are making this week and offer some context about how they are important for our company. We have made strides in building a strong and unified culture. Honesty and transparency are cornerstones of that culture, and I am committed to both.

Over the past 16 months, we have worked hard to execute our strategy with purposeful moves:

*expanding our footprint with the acquisitions of Journal Media Group and North Jersey Media Group;

*creating high quality journalism, while building one nationwide news organization with the launch of the USA TODAY NETWORK;

*and leading with digital with the acquisition of ReachLocal, a best-in-class digital marketing services company, to name just a few major achievements.

These moves are central to our transformation into a leading, next-generation media company. The positive impact of these efforts will take time, which in the near-term requires us to assertively manage our costs. What’s required is not easy and I do not take it lightly.

We made the decision to reduce about 2% of our workforce across the organization, including at headquarters. We will communicate with the majority of those affected by the end of the day on Oct. 25, with actions completed by the end of the week.

We will all feel the loss of great colleagues. Each and every one of you has my deep gratitude for your many contributions to the success of our company. Actions like these are difficult, but I remain steadfastly committed to reinvesting in our employees and the capabilities required to sustain and grow our company so that we may continue to serve our customers with excellence.

Over the next 18 months, we will continue to build our scale and invest in important digital capabilities and experiences – such as critical e-commerce infrastructure and significant upgrades to our digital content platforms.

I appreciate your continued commitment to the company and the future we are building together. Please do not hesitate to share your thoughts, questions and ideas with me. I have created an email box specifically for your feedback at [removed for privacy].

Bob Dickey, President and CEO

