Media company Gannett Co Inc (NYSE:GCI) filed a Worker Adjustment and Retraining Notification (WARN) notice on February 13, stating that the company will close its production facility in Appleton, Wisconsin. The closure, which is expected to be permanent, will lead to Gannett layoffs in 2018 impacting about 137 employees.
These job cuts add to the growing list of print media layoffs in 2018.
According to Gannett’s WARN notice, the Wisconsin layoffs are planned to occur during a 14-day period starting on May 1. The WARN notice states that the affected employees will not have any bumping rights in the company.
Here is the list of the job titles and number of employees to be affected by the Gannett layoffs in 2018.
|Job Title||Number of Job Cuts|
|Administrative Assistant I||1|
|Assistant Packaging Manager||1|
|Assistant Press Supervisor||5|
|Insert Machine/Bindery Operator||4|
|Packaging Supervisor I||4|
|Press Apprentice 80%||1|
|Press Operator I||3|
|Press Operator II||4|
|Press Operator III||5|
|Press Operator IV||7|
|Press Supervisor II||1|
2017 Financial Results
Despite a challenging situation due to year-over-year declines in its print advertising revenue, Gannett’s digital revenue and higher digital advertising prices helped the company gain strong earnings in 2017. Digital-only subscriptions for Q2 totaled 290,000, an increase of 59.5% compared to the prior year. For Q3, digital-only subscriptions totaled 312,000, a 60% rise compared to the prior year.
On the other hand, Gannett’s total publishing revenue for Q2 2017 fell by 10.7% to $692.2 million, and in Q3 2017, it fell from 10.3% to $660.3 million. This was because the company’s print advertising revenue decreased year-over-year by 16.8% and 18% in Q2 and Q3, respectively.
Gannett Laid Off Less Than 1% of Staff in 2017 as Print Revenue Declined
Gannett’s layoffs in 2017 resulted in less than one percent of its jobs being cut. These layoffs were a part of the company’s corporate restructuring. President and CEO Robert Dickey announced the layoffs at the time, saying, “No one on the Gannett management team takes these decisions lightly.”
Print advertising revenue has been a major challenge for the company. According to PricewaterhouseCoopers, overall print advertising revenue for the newspaper industry declined from $33.3 billion in 2012 to $29.6 billion in 2016.
“Gannett reports net income of $23 million, beating Wall Street estimates,” USA Today, November 2, 2017.
“Gannett Reports Second Quarter 2017 Results of Operations,” Gannett Co Inc, August 3, 2017.
“Gannett restructuring will result in 1% staff reduction,” USA Today, September 6, 2017.
“Gannett makes company-wide cuts in reorganization,” Poynter, September 6, 2017.