Morning Call publisher's memo

5/1/2009 4:24:06 PM

Memo to Morning Call employees

A Message from the Publisher

Dear Colleagues,

I want to update you about changes we plan to make to the newspaper starting next week and actions we are pursuing to reduce costs further. As we have discussed repeatedly over the past few years, the traditional newspaper business model is broken and we fight hard every day to build the foundation for a new one. It is painfully ironic that our audience reach has grown and has never been stronger while our financial results continue to worsen. As you know from our company communications, our advertising revenues decreased 27% and operating profit decreased substantially for the first quarter of this year. We must take action and reduce costs now in order to maintain other investments that position us for future growth. Here are the details as they stand today.

Newspaper Format and Design
As with all of our content changes, the readers’ needs remain our true north. As we reduce overall resources and shift ever more focus to our digital platform, we must find new ways to highlight our differentiated local content and create efficiencies throughout the process. On Tuesday May 5th, we will debut a new format that is easier to read and improves reader navigation. Prototypes will be available and posted around the building over the weekend. To be clear, while the need to reduce labor and newsprint was the motivation behind this effort, the newsroom leadership has responded with a streamlined, visually appealing and comprehensive new format. Importantly, we launch new content with these changes including new interactive reader features, one being kicked off by “Marley and Me” author and Coopersburg resident John Grogan.

For more details on the changes, including significant advances in our approach to build a Web-first newsroom, I invite you to visit Dave Erdman’s blog at http://opus/blog/.

With this new format, you will notice other changes. The first section will now include all news – local, state, national/world and business. We also introduce standard modular advertising units. This approach should allow us to more dynamically price (up and down) for ads which will yield more revenue. And we should see some efficiency gains in layout and design.

Costs Reductions
With the actions we are taking now, we plan to reduce our annual costs by $3-4 million. These reductions will come principally from compensation and newsprint. Over the next few days we will eliminate over 70 positions. While some of these positions are open, we are offering severance and saying goodbye to about 50 current friends and colleagues. This is painful. Our intent is to contact all affected employees by the end of the day on Saturday. We will try to treat everyone with dignity and respect. At my town hall meetings the issue of furloughs has come up repeatedly. At this time, we do not plan to institute any mandatory furloughs.

In addition to these workforce reductions, we are reducing discretionary spending across all departments.

In closing, it is fair to ask: Are we any closer to our vision? We entered this period of industry transformation and severe economic decline from a position of strength. Today our audience reach is unrivaled. Our newsgathering force is the largest in the Lehigh Valley. We are faster and innovate more today then yesterday. And you remain dedicated and do amazing work, every day. I remain confident in our One Team vision and your determination to build a thriving Morning Call. We will conduct town hall meetings next week to discuss our near term strategies moving forward.

As always, I thank you for your hard work and dedication.

Regards,
Tim

SOURCE: Poynter Online