L.A. Times Will Eliminate '100-150 Positions,' Job Cuts Across Tribune
As we documented this morning, there's a big divide over who should run the L.A. Times, and before Sam Zell and publisher David Hiller announce their choice, they're getting some dirty work out of the way: Job cuts are on the way.
Mr. Hiller writes that the paper will elimiminate 100-150 positions at the Times, which includes ending open positions, and laying some off. Sam Zell writes in his own e-mail that he wants to add staff some day, but: "Unfortunately, I can't turn this ship from its course of the past 10 years within just a few months." Mr. Zell said there will be job cuts at all Tribune papers.
Here are their memos:
Folks,
As you'veve just heard from Sam, we are going to be eliminating some jobs at our newspapers and at Tribune corporate. As Sam related, the revenue picture continues to be bad, and well worse than was forecast at the time our going private transaction was completed. We had been planning to find savings over the course of the year, primarily through eliminating positions as they became open, but these current trends require that we act sooner.
So we will be undertaking a combination of steps to reduce staffing across all departments -- including eliminating open positions, a Voluntary Separation Program for eligible employees, and a limited number of layoffs. All in all, we will be eliminating in the range of 100-150 positions across The Times.
We knew we were going to have to go down some in staffing this year, so if there is anything positive here it's that we are able to accommodate some of the reduction through a voluntary program, and we'll also get this done now and hopefully clear our focus for the year ahead. We will be getting detailed information on these plans to you by this coming Monday.
I wish the year were starting with a more positive revenue picture, but the whole industry is facing the same thing and we have to be realistic in dealing with the situation we are in.
I appreciate your understanding and support.
David
--------------------------------------------------------------------------------
From: Talk to Sam
Sent: Wednesday, February 13, 2008 8:17 AM
Subject: Reducing staffPartners,
As I have said repeatedly while on the employee road show, we will not achieve success by just cutting costs. Ultimately, our battle will be won by growing revenue, and by making Tribune Company a fierce competitor across all media channels print, broadcast and interactive.
I have also shared the reality of our significant debt levels and financial covenant obligations. These obligations require us to be more disciplined than ever with respect to managing our costs and maximizing the productivity of our assets and people. We need to constantly think and act like owners, and relentlessly strive to optimize the effectiveness of our businesses.
In my recent email about the ESOP, I outlined the assumptions we made in developing our projections for Tribune's financial performance going forward:
- Cash flow in line with that of 2007
- Newspaper revenues continuing to decline
- Broadcast and interactive revenues increasing.
While results so far in broadcasting and interactive are promising, we have not had time yet to realize these gains. Further, a weak economy and significant declines in advertising volume at our newspapers are putting downward pressure on our cash flow. These factors are forcing us to take immediate action, and are the basis for the sense of urgency you've heard me talk about so often.
It is within this context that I am announcing we must reduce the number of staff positions within the publishing group and corporate office through a combination of voluntary separation programs, involuntary layoffs, attrition and closing of open positions. Each of our newspapers is making its own decision about which programs best suit its needs.
Most of the affected positions are in support service areas, such as finance, HR and technology. We are creating a flatter organizational structure, eliminating layers of personnel that inadvertently created bureaucracy. The result will be a streamlined culture that accelerates our decision making, and enables us to act quickly.
I have discussed with many of you our mutual concern about the cyclical eroding of content quality to meet budgets manufactured in the corporate office. I promise you, in time, we will end that downward spiral. Right now, across the company, we're going through a zero-based budgeting process designed to let each business unit develop and be responsible for its own budget. This will make our financial planning and goals more realistic, allowing us to prioritize the work ahead and then staff accordingly.
Down the line we will likely be adding staff where there are opportunities for revenue growth. At the moment, we are still assessing the priorities and needs of our interactive and broadcasting groups.
Unfortunately, I can't turn this ship from its course of the past 10 years within just a few months. Further, while I will do everything in my power to drive, pull and drag this company forward, I can't promise we won't see additional position eliminations in the future, if we continue at our current rate of cash flow decline.
But, make no mistake. This is not my ultimate strategy for our company. I believe we can achieve greatness. I have staked my reputation on it.
Sam
I feel bad when anyone loses a job but frankly, the LA Times isn't a newpaper. It's a propaganda mechanism for the liberal agenda. So I'd actually celebrate if it went completely out of business. To bad the modern joseph goebels has to lay people off...he should fire himself...then go back and read more than 2 books and educate himself.
I have to agree, that newspaper promoted some of the most liberal viewpoints I have ever seen, and I can't say I would miss it at all.
Does anyone really wonder why the much maligned Fox News and its parent company, News Corporation, are doing so well?
Personally, I think that the liberal editors and writers of the Los Angeles Times have pushed that paper to the brink of bankruptcy by alienating readers to the point where people stopped reading/buying it.
Most of the intelligent people I know read or buy the Wall Street Journal - less fluff, more facts, and when opinions are given, they at least try to appear balanced!
RIP, LA Times.
eat you own medicine...
more outsoursing...
What the Times needs to do is take Fox News slogan of Fair and Balanced. If they provided some news and gave you both sides of a story then everyone would read it. Newspapers use to report news and they had a section called "Opinion" but what has happened is the entire paper is Opinion and that is one sided.
There is no reason to read it and in turn you do not see the advertising so the advertisers get nothing.
I can turn this paper around overnight by having them report news without their opinion and personal slant.
Note to Staff:
Doesn't anyone at The Times get that by routinely putting out lousy politically biased stories your are not on the road to prosperity? Exactly how many owners are you going to go through before you get it?
As an example, Pelosi, Boxer, and Feinstein ain't done diddly for Southern California and you still support them. Why?
The landlord you're now working for is going to sell off the properties and dilute The Times into an even further skinnier rag than it already has become, then sell it off to a some local egomaniac.
Open your eyes...
I'm glad to notice that there are still people out there who share my views. The liberal LA Times should shut down.
The influence of the out-of-touch conservative media and ideas are quickly waning: Rush, Sean, Laura, etc. couldn't even motivate their base to off McCain.
The tide is turning, Americans are reaching out beyond commentators for a variety of news sources so they can actually understand how this country was swindled away from them. People are finally waking up to the corruption and lies -thankfully our press still has the freedom to speak the truth.
The LATimes serves American City of the 21st Century it would be wise to coalesce its talented staff and set them loose and shine some light upon our planet, which is sadly sliding into the dark ages.
In these times of a shrinking economy , does the Tribune co. need to lay off 150 American workers while it pays an over-the-hill Japanese outfielder 2 1/2 times what they make? His name is Fukudome - how appropriate that Sam Zell prefers the Fuku to those who serve the public's interest.
Who are these fascists who think the Times is too liberal? Must be Orange County idiots who think Bush has done a great job by invading Iraq for the benefit of his Big Oil patrons. Let 'em read the Register or Daily News if they want pandering to 80 IQ Republicans.
No one will miss this Leftist rag when it finally goes completely under. It's a boring publicity organ of the Democrat party that only the far Left reads, the headlines are enough for the rest of us: 1. It's Bush's Fault. 2. World to end tomorrow, women, children and minorities hardest hit. 3. If you think illegal aliens are criminals and should be deported you're a racist. 4. If you think marriage is a covenant between a man and a woman you're a homophobe. 5. The U. S. Army is evil. 6. Everything is America's fault, America is to blame. 7. Raise taxes on the rich to redistribute income. (Then when the rich stop spending, and the economy slows, the paper excoriates the rich for not spending so that the middle class can take money from the rich for goods and services the middle class wishes to sell!) 8. Socialism is good, capitalism is bad. 9. Government is good, business is bad. Ho-Hum, who wants to read more from this propaganda arm of the Left? NOT THE GENERAL PUBLIC. Continue firing your Leftish writers, and enjoy your well deserved downward spiral into oblivion.
Sure hate to hear this. You're one of the few remaining newspapers I depend on for actual "news". I'd considering paying a fee for on-line service, if it will help.
fox isn't going under.. what whole industry? YOUR paper ... "you can fool some of the people some of the time, etc."
Perhaps the Times organization would not be experiencing these difficult times if they were to print the news in a fair and objective way and lay off trying to direct the thoughts and the elections of the masses toward liberal socialism. Communist are like starving artist they bitch a lot in and subsist in a manor fitting a parasite....News is a business and requires capitalistic instinct to prosper, responsible stuff, jingoism and slogans are for the mindless.
Well, it's a start.
I've got an idea... How about REPORTING the news, rather than spinning it with your liberal slant. You are worse than PRAVDA and I have read them both!
As a liberal I'm fortunate to be more intelligent than most of you right wing nuts. The LA Times is a superior publication and it's just feeling the pinch of the Rethuglican's downturned economy. Like it or not, the Progressives are superior. When we sweep to power in 2008, I expect many of you ditto-bot war mongers will be interned, stripped of your rights, and your possessions given to the UN where they can be distributed to the poor. Thank you LA Times for continuing to dare to speak the truth!
@ Feb 13, 2:12pm
That is truly what you believe? Amazing.
What isn't a matter of opinion: the extremely simple concept of supply and demand. In our economy which is the closest approximation of a free market system, you are paid what you are willing to work for and what you are worth. These "true talents" are laid off because what they bring to the table is less than what they take from the table.
You probably make the "rich doctor, poor teacher" argument. Yet, how many folks can operate on a baby vs. how many can teach 4th grade? Just think for once--put away the emotions.
@2:43--
Your "more intelligent" statement made me chuckle a little after you: 1) Used the term "Rethuglicans", 2) cannot discern the difference between a downturn in the economy and a specific publication's business failures 3) believes that direct theft of possessions would lead to any kind of good. Whew (wiping forehead), please stay over there with your "intelligence."
Most of my news is obtained up to the minute from the Net. Yes, the Times, as are so many news outlets, is biased, and even prejudiced. If they were reporters instead of "journalists", perhaps they would receive a better reception from a currently disinterested public.
Additionally, the Times is the only newspaper I know of that has a bigger entertainment section than their 'news' section. It seems the Times is more interested in what the celebrities are doing than what local citizens are up to. Each day, their entertainment sections have more pages than the rest of the sections. I pass over those activities and skip to what is left of the "comic" section, another area of political correctness and proposed diversity, even though they are not funny and have been cut to the bone.
If you close, I'll miss your coupons.
The Times, as well as all "dead tree" papers, is just another buggy-whip manufactuer in a race car world! Sure they've probably lost a lot of circ because of their percieved left-wing news slant but most newspapers of all stripes are laying off and consolidating these days. In a time when all consumer news (local, state, national, world, etc) is on the internet in some form, the old tech hardcopy paper is "old news"!
Bye!
Every city needs a major newspaper to hold politicians, bureaucrats, CARDINALS, or anybody in a position of power accountable for their actions and misdeeds. I have lived in Los Angeles for almost 30 years now. And in the last twenty years LA Times has not been holding any body accountable. We Angelenos see corruption on a daily basis here. And yet The LA Times will not cover/report on the obvious.
Example: No one is ever held accountable for the failure of the Los Angeles Unified School District. Once a beacon of education in the nation, it is now just a juvenile holding pen. There is so much wrong in every area of this organization, yet, the Times won't go after them. It won't hold any one accountable there. My guess is that it would be too politically incorrect to do so. Too worried about hurting some ones feelings. Or some minorities feelings.
Example 2: A completely evil Catholic Cardinal. Do I need to say why? Allowing priest to abuse children. Yet, the LA Times, who should be demanding he depart, just lets the story die. Why?
The examples are endless in our face every day of corruption and yet the Times drops the ball. I could write a book on how many stories aren't reported on. But alas, I don't have the time. I no longer read the Times. I read the internet. My guess is the Times is now corrupted.
I wish I could say, I want them to stay, but they no longer do what is right for the community of Los Angeles. The community sees this and they aren't buying it either. They of all people should know that people seek truths. The LA Times no longer seems interested in Truths. Thats why they are failing. You should clean the house, and get rid of the politically correct writers and editors and start looking hard our corrupted officials and start holding ever body accountable.
May the late, liberal oracle of LA rest in peace.
The market is there for an actual NEWS paper, but not for the liberal rubbish the Times continued to wallow in.
Here are their memos:
Folks,
As you'veve just heard from Sam,
No wonder they're going belly up. Even the boss can't proofread his own emails.
Big News cares about is PROFIT. They Fire poor workers to make more PROFITS. They should be TAXED to make up for the loss in tax revenue that laying off all thes poor workes has. BOYCOTT LA TIMES...Cancel your subscription now.
I see that the entire L.A. Times readership has shown up in farce...All 4 of them.
Like most far left wingers, they think this paper is mainstream and anybody that disagrees with them is a right wing facist. A real facist uses violence against their polictical enemies.
Thank goodness the free enterprise system is also allowing the LA TIMES to good out of business!!
Oh, well. Next...
If you think the bulk of media is conservative, then you are the one who is out of touch. The LA times should be re-titled Das Capital. If lefties are speaking the truth then why is Air Havana errr Air America sinking? why is the times laying off folks? the answer.. people are sick and tired of one way reporting that's why. Dennis Kucinich said, "The American eagle needs a left wing and right wing to fly," if only major newspapers believed the same.
What has happend to the News Industry is just as corrupt as Enron. The Corporate Leaders have spent their paper's capital to push their Leftist adgenda. They have used the stock holder's equity to achieve personal goals and political ambitions, just as Enron's CEO destroyed their stocholders equity to gain personal wealth. Their less and less popular positions with the consumer, erroded company value and stockholders paied the biggest price (loss of billions in share holder equity) as well as the few remaining employees who will eventually lose their jobs. But the CEOs, will get "fired" with hundreds of millions in "severance packages". Corrupt to the core. If the paper's leaders want to push a political adgenda, do it by spending your own money. These Liberals always fund their programs with other peoples money!