Poynter Media Business Analyst Rick Edmonds counts six newspapers that have announced layoffs this month alone – “once-proud, top-ranked regionals, three of them owned by McClatchy” – despite a return to profitability in the second quarter.
But profits have come from cutting expenses, not increasing revenue. Ad revenue continues to drop by 25 to 30 percent over last year, according to Edmonds.
“(S)taying profitable will require continued vigilance on expenses,” he says. “A little of that takes care of itself – reduced paper use since so much less advertising and news is being printed. But companies targeting above-average profit levels – like Gannett – or forced to keep profits up to handle a high level of debt – like McClatchy – will continue to work the outsourcing and down-sizing option.
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“Still, I fret that many newspapers are flirting with the tipping point of seeming expendable to discerning readers who can see the gaps and flaws caused by cutting too much too fast.”
(Note: the author of this site was among 10 people laid off from The News & Observer in Raleigh, a McClatchy newspaper, this month.)
Tags: job cuts, McClatchy, N&O, Newspapers, profits, revenue