USA TODAY cuts 60 to 70 jobs due to declining print ads
USA TODAY eliminated 60 to 70 jobs Wednesday, a move aimed at cutting costs amid declining print ad sales and supporting its increasing focus on delivering news online and on mobile devices.
The layoffs, effective immediately, hit across various sections in the newsroom and business operations. About half of the jobs cut came from the newsroom, a roughly 8% reduction in newsroom staff.
The move comes as USA TODAY and 81 other newspapers owned by Gannett prepare to be split from the parent company's TV and digital division next year.
The company didn't name the staffers who were affected, but several reporters and editors took to Twitter to announce their departures.
"USA TODAY is working to align its staffing levels to meet current market conditions," the newspaper said in a statement. "The actions taken today will allow USA TODAY to reinvest in the business to ensure the continued success of its digital transformation."
In the second quarter, Gannett reported that its publishing advertising revenue — including USA TODAY and its other newspapers — fell 5.7% from a year ago. Gannett doesn't break out USA TODAY's financial performance separately.
President and Publisher Larry Kramer said the move was made due to a difficult and inconsistent national print advertising market and to accelerate the newsroom's digital transition, in which it has pushed reporters to publish real-time news and introduced new editorial products aimed at generating additional sources of digital revenue.
USA TODAY joins a growing list of national news organizations, including CNN, Time Inc. and The Wall Street Journal, that have had to trim their staffs. U.S. print advertising spending is estimated to fall 2.2% in 2014 to $31.8 billion, according to eMarketer. U.S. newspaper ad spending is estimated to fall about 4% this year, it says.
Gannett has introduced several restructuring moves that will result in dramatically altered operations at the headquarters and a number of local news properties. Last month, Gannett announced that it will spin off its TV unit — it owns or offers services to 46 stations — as a separate company that will be headed by Gannett CEO Gracia Martore.
The print business will retain the Gannett name and be headed by Robert Dickey, who is now president of Gannett's U.S. community publishing division.
As Gannett's print properties seek to become more financially independent away from the more profitable TV stations, several newspapers are experimenting with a restructuring plan in which real-time digital publishing is more heavily emphasized and staffers are required to reapply for a reduced number of positions.
USA TODAY, which has implemented many of the changes envisioned for local papers, doesn't plan to introduce the same restructuring plan.