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Newsday to cut staff by 100

BY JAMES T. MADORE | STAFF WRITER

November 12, 2004

Newsday announced Thursday it would eliminate about 100 jobs, or 3 percent of its work force, in the wake of a circulation scandal that has sapped revenues.

Sources said the reductions would affect many departments at the company, which employs about 3,000 people. Half the cuts are expected to come from the newsroom.

As part of the reductions, Newsday plans to use fewer printing presses at its Melville headquarters, costing jobs of 27 pressmen, said union president, Dennis A. Grabhorn. He also said the paper's top management is considering further expense reductions such as eliminating separate editions for Nassau and Suffolk counties.

A Newsday spokesman said the paper is "rethinking every aspect of our business" but that such decisions had not been made.

In a letter to employees, publisher Timothy P. Knight said "it is clear that we face continued revenue challenges next year and, as a result, we need to make significant changes in the business in order to have a healthier newspaper for the future."

Knight declined an interview request but in a staff meeting earlier this month he blamed declines in advertising revenue on the circulation scandal coupled with ongoing consolidation among retailers and more media competition.

Grabhorn, president of Local 406 of the Graphic Communications International Union -- which represents newsroom employees, truckers and pressmen among others -- blamed the cutbacks on "mismanagement" by the paper's former leaders, many of whom retired early or were fired in the wake of the scandal. "I feel that this isn't our fault," he said, referring to the circulation fraud. "And yet, here again employees are being asked to pay for something that somebody else did."

The 100 job cuts will be in the form of voluntary buyouts as well as terminations. By contract, unionized employees must be offered buyouts, and then if the company fails to achieve its reduction targets, layoffs could follow.

The affected workers were to be notified by their supervisors either Thursday or today. Those being offered buyouts will have several weeks to consider the offer, "after which time we will determine whether additional staff reductions are necessary," Knight said.

Employees who leave the company will receive severance, medical benefits and outplacement services. Newsday spokesman Stu Vincent confirmed that "a small number" of workers were terminated effective immediately. The latest job cuts come on top of two earlier reductions in January and June that trimmed the work force by 72 jobs and included both voluntary buyouts and terminations.

The magnitude of the newsroom cuts -- 50 jobs out of a work force of about 570 including part-timers -- was a key factor in Tuesday's resignation of top editor Howard Schneider, sources said. Schneider and publisher Knight also disagreed over the paper's future direction.

Knight named John Mancini, assistant managing editor for New York, to replace Schneider.

In an interview Thursday, Mancini said the number of newsroom jobs being axed was "because we are one of the biggest departments ... and that's where the expenses are." But he also expressed a mix of sadness and determination.

"This will not devastate the newspaper," Mancini said. "It will not change our mission. We aren't going to slash and burn here."

Newsday isn't alone in shrinking its payroll in the face of uncertain economic times. Earlier this week, the Orlando Sentinel eliminated 20 jobs including 11 vacant positions.

Industry economist Miles E. Groves said, "Before the scandal, [Newsday parent] Tribune had no reason to take a look at the headcount numbers at Newsday. But now they rightfully feel scorned and are taking action."