Sunday, November 09, 2008

Seattle Times plans to cut 130-150 in another wave of layoffs


The Seattle Times plans to cut its staff by 130 to 150 workers, another grim reminder of the daily newspaper’s financial struggles.

In a memo to staff Monday, Publisher Frank Blethen and President Carolyn Kelly said they were forced to downsize to adjust to the current “economic malaise.” The announcement follows staff reductions earlier this year. The memo noted there could be further staff reductions.

Blethen and Kelly said they planned to reduce the staff by about 130 to 150 workers, by laying off workers and accepting voluntary separations. Some workers also could see their hours cut.

Times officials declined to discuss the announcement publicly, saying they first wanted to communicate details to their workers in a series of department meetings planned for Monday.

The announcement comes at the end of the newspaper’s budget process for next year. It is the latest effort by the Times to cut costs to adjust to a decline in revenue, a situation that many daily newspapers are facing across the country. In earlier rounds of staff reductions this year, the Times saw a reduction of about 200. The newspaper also closed bureaus.

As of Oct. 8, The Seattle Times had 1,599 full-time and part-time employees.

“As difficult as these operating decisions are, it is important to remember we have been here for 112 years, weathering many ups and downs, and these budget actions are necessary to respond to the current economic conditions and to position our newspaper and online operations for many more years of success and community service,” the memo stated.

The memo follows:

TO: Seattle Times Employees
FROM: Frank Blethen and Carolyn Kelly
DATE: November 3, 2008

Even in this unprecedented national economic crisis our newspaper readership and online audience continue to be strong and stable. The Seattle Times Company’s print and online network reaches 70 percent of the adults in King and Snohomish counties. We are, by far and away, the area’s leading and most popular provider of news and information. And we are also the leading and most effective medium for area advertisers.

With so much challenging news, it’s instructive to note that:

• The Seattle Times was one of the only metro newspapers in the United States to actually grow circulation from 2000 through 2007

• The Seattle Times Company’s online network is the most dominant online news network in the state

• seattletimes.com recently ranked among the top 16 newspaper Web sites nationally

But even with this great readership and audience success, we have had to adjust to structural industry changes which have reduced advertising revenue in all media, worldwide. Even the growth of online revenue has stalled in this world economic slowdown.

Prior to the country’s current financial crisis, the Seattle Times Company did an excellent job making necessary adjustments in staffing and infrastructure in response to the structural changes in the newspaper/electronic media business. Unfortunately, today’s economic situation is forecast to last through 2009 and possibly into 2010. Like almost every other business, we are now forced to further downsize the Seattle Times Company to adjust to the economic malaise.

Within your departments today you will hear more detail about the steps being taken for the 2009 budget, including the staff positions being reduced.

Among the most difficult is the workforce reduction of approximately 130-150 positions, a combination of voluntary separations and layoffs. Additionally, there will be reductions in hours for some groups. In certain job categories, Expressions of Interest (voluntary separations) are being considered. Specifics will be communicated within departments.

As the 2009 budgeting process continues, there will be additional expense reductions, which may include additional layoffs.

As difficult as these operating decisions are, it is important to remember we have been here for 112 years, weathering many ups and downs, and these budget actions are necessary to respond to the current economic conditions and to position our newspaper and online operations for many more years of success and community service.

As always, we are deeply appreciative of your contributions as a member of The Times family.

Frank and Carolyn

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