Dear Colleagues,The Press-Enterprise has made a few newsroom hires in recent months, I'm told, so it's not clear if yesterday's layoffs actually shrink the news staff or keep it steady.
As with others within our industry, we’ve had to take severe measures over the past several years in order to adjust our business to the economy and the marketplace changes. We continue to be very uncertain about what will happen with our local economy in this coming year, largely because we’ve continued to experience revenue challenges.
As a result, we’re being forced to make further adjustments in our business priorities. Some of these will impact The Business Press, which first published in September 1995 and has been part of our product portfolio for the past 16 years. Unfortunately, because of the economic downturn of the past three years, we’ve come to a point where we’re no longer in a financial position to continue publication. Consequently, June 6, 2011 will be the final weekly edition of The Business Press.
This means we are changing how and where The Business Press readers seek and consume B2B information each day. The business reporters of The Press-Enterprise will continue to cover the Inland Southern California business community, but now these B2B stories, analysis and in-depth perspective, along with blogs and calendars, will be appearing on PE.com and in the daily Business section.
This was a difficult decision to make in response to the current adverse business environment with which we in the newspaper industry continue to struggle. We understand that this current business climate can be difficult to deal with, and we thank you for your commitment to our Company.
Ron Redfern
Publisher
Jun 2, 2011
Press-Enterprise publisher announces changes
The Press-Enterprise laid off 24 employees yesterday, including three newsroom employees - a city reporter and two web staffers. This morning, Publisher Robert Redfern sent out a staff memo (see below) announcing changes to the paper's business publications. Redfern does not reference the layoffs, but notes the "severe measures" taken by parent-company Belo in the last few years in response to falling revenues. Here's the memo:
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The sad part of all these layoffs in the newspaper business is that there is no good news on the horizon. The print and delivery model is broken for a number of reasons and advertisers have an effective cheaper way in reaching their clients. Whether there clients consume retail, national or classified, it will only diminish in the future. Maximize what you have cause there is no pot of gold no matter what you do.
The main challenge that the Press Enterprise has is their inability to react to the local market until it is too late. The level of turnover in advertising and circulation is reflected in the poor customer service.
Many of the changes that have been made in the last year were brought up in “open forums” by employees three years ago, but to deaf ears both in and out of the newsroom.
The Business Press was struggling when the SB office was closed and a much smaller staff was given the task of keeping both it and the business section afloat.
“We continue to be very uncertain about what will happen with our local economy in this coming year”
It is difficult to believe that this statement comes from a manager whose job is to know future economic trends and respond to those in advance rather than just waiting to slam into the brick wall….what is his salary?
As noted in the earlier blog post, the newsroom can shoulder its share of the burden by making questionable news decision with the return on investment to their readers.
They are mired in muck with a dated culture when it comes to their web presentation.
Riverside really is ready for some new blood starting at the top “THEY CONTINUE TO BE VERY UNCERTAIN”
I clearly am not defending management at this newspaper and for that matter management at most newspapers. But, there is not a manager anywhere in any industry who can right this economic disaster. As mentioned earlier, the model is long broke. Print and delivery is dead. The economics of such make even less sense as circulation continues to dwindle.
Which will be the first newspaper to stop traditional newspaper delivery before they just close the doors and turn out the lights.
Rocky Mountain News; Seattle PI and a host of others.
The captain of the ship always determines which crew member is tossed overboard first. This is known as the PE drunken sailor syndrome where you hire and spend what you can during clear skies (new employees over the last year.). When the storm hits, you just start tossing the dead weight over.
Not unlike any other business. You should hire during good times/expansion and reduce in troubled times/contraction. The problem with newspapers is that there hasn't been any expansion for years and there won't be. If you don't know that and you are running a newspaper you shouldn't be. You will need to deliver less or in different formats or both among other innovations. It appears that newspapers are not capable of doing so.
Not sure what the publisher's salary is, but he has downgraded from the Porsche that he used to drive daily to a fully loaded Mini Cooper. Plus, the company just spent money on a new computer system that will streamline web and print and maybe make some jobs obsolete.
He is right...just no way to tell where the future of publications were going?
Streamlining makes good sense; they've been doing that with the quality for a few years.
http://news.yahoo.com/s/yblog_thecutline/20110602/ts_yblog_thecutline/grim-numbers-for-newspapers-magazines
You have to salute Redfern for being proactive in an extremely difficult economic downturn. Not sure what you expect him to do??? Dollars in have to be greater than dollars out....think about it. Employees equate to the largest expense category a newspaper has. At some point a newspapers FTE count has to be in line with its revenue generation.
Then salute every publisher for the cuts made from the early 1990's till now and going forward. Redfern didn't decide to cut, he was told to. In most cases they wait for the word to cut rather making decisions in reality. It takes vision and nerve to make adjustments as business conditions change. Sadly, those qualities and a host of other leadership abilities are missing in newspaper executives.
Anyone know who from the newsroom was laid off?
They have a 5 story office building that is basically empty. They have a production facility sitting on a large piece of land. They produce only their own paper, which is VERY expensive, but their solution is to lay off some newsroom people? And you think Redfern should be congratulated? It isn't just Redfern but a lot of these kinds of decisions are based on the publisher's egos. What publisher wants to outsource their production, sell the buildings and land, and operate out of a much smaller facility? Not many, but this is exactly what they need to do. The days of the massive metro paper are over. Print isn't dead but this approach is. Meanwhile, ax some more rank and file and be called a hero.
@9:54 a.m. How many managers and executives were laid off? None? It's always the little people who get axed. I wonder if the executives are going to get bonuses and raises now that they've freed up some money and made "profits."
RE: the first commenter: U've also been drinking from the publisher's juice, haven't you. WTF? print and delivery model? consume retail, yadayadayada? WTF? Stop it already. These publishers only lay-off, cut and slash to keep their profits at same level for themselves.
I don't think Redfern should get any of the credit or the blame. He's just doing what Belo tells him to do. It's like blaming Charlie McCarthy for the things Edgar Bergen says.
10:22, the first poster might have been drinking but you are mainlining. You actually think the publisher is in charge of anything but following orders from Dallas in this case? Come on. And, as far as the model being broken, isn't it? Seems to be the case from this drinker as well. Maybe you think the economics of newspapers are fine and when the recession is over business will come roaring back.
I think we can all agree that newspapers are on life support, if in reality they have not already had the sheet pulled over their head.
My understanding is that the web took another hit in the newsroom. This makes little sense if web is the future?
Seems like they hire just enough new blood to slaughter so the inner circle goes untouched?
Who's this inner-circle everyone keeps referencing? You mean the Editor and Mr. Mark? They've been there for years, whats new about this?
I find it funny that LANG gets ten times the comments on this blog...no one really gives a shit about the PE....lol
They get more of the venom because they suck a lot more. When it comes to running a newspaper lang finishes third in a two horse race. Glad others notice the tremendous amount of unhappiness among lang past and current employees. It boggles the mond that they can continue to find the wrong path.
I worked at both the PE and LANG, and it was my decision to leave both jobs. Based on my experiences at both places, I'd say the ratio of comments is about right.
Anyone heard about double digit layoffs at the Orange County Register this week? Ad staffers get pink slips. What about the newsroom?
If you work at a newspaper, expect layoffs. If you work at a bankrupt newspaper, count on layoffs. I wonder why this is such a shock. This has been going on since the early 1990s. You are trying to sell ice to Eskimos. They don't need it at any price.
4:45a.m.: That's exactly my feeling as I am now out of work (one of people shown out last week at the PE). I have nothing to be angry or bitter about at this point. We all have to know it's not a matter of if we'll lose our jobs ... it's a matter of when. It's disappointing, sure. But the sooner we get over the anger, the better off we'll all be.
Amen, and best of luck finding work.
I'm super late here. I would say however that I find it hard to suggest a "salute" to any of these companies leadership - not when their big solution is to keep putting band aids on top of band aids and carving out one more hole in their belt.
I've recently taken to saying, and it bears repeating, a business model that doesn't make money isn't a business - it's a hobby.
Somebody needs to figure out how to make these things businesses again because expensive hobbies don't last long in this economy.
BTW - I'm a newcomer but I'm liking this blog Mr. Scott. Up-to-date. Fulfills my voractious media needs. I find it so ironic when people have media blogs that they don't update!! Kudos.
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