Freep exempt from Gannett layoffs

The Detroit Free Press is exempt from the mass layoffs taking place today at McLean, Va.-based corporate parent Gannett Co. Inc.

“We had a staff reduction and expense reduction at the beginning of June,” said Rich Harshbarger, vice president of consumer marketing for the Dedtroit Media Partnership, the Gannett-controlled company that handles the joint business operations of the Free Press and The Detroit News, which is owned by another publishing company. MediaNews Group.

The Freep, News and the partnership collectively cut 125 positions in early June.

Gannett is reducing the staff in its U.S. community newspaper division, which has more than 80 daily papers, by 1,000 to 2,000 jobs today out of a work force of about 41,500.

The publisher cut 4,600 jobs last year.

The Free Press is in a separate unit with Gannett flagship USA Today and isn't subject to the community newspaper division's headcount reduction mandates. However, Gannett newspapers in Lansing, Battle Creek and Port Huron are expected to be affected.

The newspapers in recent years have steadily trimmed staff through buyouts, early retirement incentives and layoffs, including 220 jobs in December. The Free Press was exempted from other rounds of cuts because of its plan to reduce home delivery to three days a week while increasing its online presence.

The two Detroit newspapers and the partnership operation have, combined, nearly 1,800 employees.

The cuts stem from continued print advertising revenue declines throughout the newspaper industry. In the first quarter, Gannett's net income was down nearly 60 percent to $77.7 million compared with the same period last year.

Gannett, which reports second-quarter earnings in mid-July, had $3.7 billion in debt at the end of the first quarter, the Wall Street Journal reported.

[Source: Crain's Detroit Business]