Publisher of Philadelphia newspapers calls layoffs 'unavoidable'

Meet the new boss. Same as the old boss.


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Publisher of Philadelphia newspapers calls layoffs ’unavoidable’
Eds: Moving on general news and financial services
By PATRICK WALTERS
Associated Press Writer

PHILADELPHIA (AP) — The new publisher of The Philadelphia Inquirer and the Philadelphia Daily News told employees Friday that layoffs are “unavoidable” because advertising revenue is down and the owners need to cut costs in order to meet their bank obligations.
“We must reduce our work force so that it is in line with our reduced revenue,” wrote Brian P. Tierney, chairman and chief executive of Philadelphia Media Holdings LLC, which bought the newspapers in June. “To the extent we don’t get the savings, those layoffs will be larger.”
Philadelphia Media Holdings — an investment group made up of Tierney, luxury homebuilder co-founder Bruce Toll and other local investors — bought the two dailies, their Web site and sister properties from McClatchy Co. in a deal valued at $562 million.
Tierney expressed optimism after the sale was announced, saying he wanted to invest in the newspapers to ensure their continued growth.
But in his letter, he said the investors needed to make changes. Citing contract negotiations with the newspapers’ unions, he said the company needs to restructure labor contracts and the work force.
“We need to reach agreements that allow us to achieve the savings to meet our loan obligations, and to reinvest in and to grow our business,” he wrote.
Cash flow dropped from $100 million in 2004 to $76 million last year and is estimated to be less than $50 million for 2006, Tierney said.
Jay Devine, a spokesman for Philadelphia Media Holdings, said the financial picture has changed dramatically in the last few months.
“We also were optimistic about the end-of-the year quarter,” Devine said of the group’s initial hopes. “That, too, now looks very grim.”

 

lots of great friends there, best of luck to everyone

 

Dammit!

Good luck guys!

 

Have a salad once in a while, you fat pig.

 

Have to free up some change to keep paying Stephen A. for doing nothing.

 

Typical with any big news organization. There's always a bunch of overpaid fuckers sittin' around grinding their heels into the little guy, otherwise doing nothing.

At least NBC is getting on the bandwagon here with print media and doling out the pink slips.

And I try to steer clear of politics as much as possible, but weren't these Republicans some economic wizards or something?? prior to election, that is. But I guess Repoobs or Democraps, regardless of politics, nobody can help the situation when nobody wants to advertise because nobody's buying anything because everybody's working so freaking much, they just don't have time.

 

They want to advertise . . . on craigslist.

 

Wow ... who could have seen this coming?

Rich men with no newspaper experience think it would be fun to get into the game ...

Get to be bigshot saviors for a while, then find out cash flow isn't what they thought it would be and start systematic destruction of proud properties.

Paging Mr. Ingersoll ... Mr. Ingersoll to the white courtesy phone.

 

Difference here, Iono, is these folks did know how the game was played. Head of the group was a major PR hot-shot in town. And supposedly they looked at the books closely and consulted with people in the industry.

Anyone else think the Daily News getting killed off is a legit possibility?

 

I'm not a beancounter and I hate the breed -- but when your revenues drop from $100 mil to $76 to $50 mil that quick, you're doing something wrong and you need to do something drastic.

 

god, and george bush keeps telling us how great the economy is.

anyone see what ford announced today?

 

this is sad news for the city of philadelphia