Gannett Co to Close Design Studio, Lay Off Employees
America’s largest publisher is continuing to close studios and lay off employees as the newspaper industry faces a shift away from paper media to electronic media.
Gannett Co Inc (NYSE:GCI) has announced this week that it is closing its design studio in Nashville, Tennessee. Following the closure of the studio, 88 employees are expected to receive pink slips from Gannett.
The design studio was primarily responsible for the designing and production of The Tennessean—the daily newspaper published by Gannett in Nashville. A number of other small community newspapers, also published by the company in Middle Tennessee, were likewise being designed here.
The smaller titles that were being designed at the Nashville studio include The Commercial Appeal, Knoxville News Sentinel, The Jackson Sun, The Daily News Journal, The Leaf Chronicle, and a number of other lesser-known papers.
Gannett informed managers of the studio that the company will be moving all of the design studio’s ongoing work to other studios outside of Tennessee. The transition is expected to complete by October 1 this year.
More Gannett Cost Cutting in 2017
This is the second design studio that Gannett has announced to close within a span of less than four months. The company closed another studio in Asbury Park, New Jersey, earlier in April.
Following these closures, Gannett is now left with only three studios in Louisville, Des Moines, and Phoenix to take care of the designing and production of more than 100 newspapers.
Just over a month prior to this closure, Gannett also announced layoffs of over two dozen employees in Binghamton, New York. Last year in October, the company revealed its plans to cut its workforce by about two percent in order to curtail costs.
Gannett has been taking steps to cut costs as its core business of daily newspapers witnesses an industry-wide decline. The rise of electronic media is pushing advertisers away from newspaper advertising to digital advertising, where advertisers are starting to see more convertible traffic. This has caused a big blow to newspaper publishers who generated most of their revenue from ads.
Numerous media outlets have likewise announced layoffs this year as they shift their focus away from print media to digital media. Media giants like Time Inc (NYSE:TIME), The New York Times, and HuffPost have all slashed their workforce in recent months.
“Gannett to Close Nashville Design Studio,” Nashville Scene, August 1, 2017.