Gannett, publisher of USA Today and hundreds of other newspapers, is instituting major cost cutting measures amid a “deteriorating macroeconomic environment,” CEO Mike Reed said in an internal memo obtained by the New York Times. The company is requiring employees to take five days of unpaid time off in December and is offering severance to those who voluntarily leave.
The newspaper industry has fallen on hard times in recent years as circulations and advertising dollars have declined, contributing to increases in news deserts and the spread of misinformation. Gannett merged with GateHouse Media in 2019 to become the largest U.S. newspaper publisher based on daily circulation. It owns local newspapers like the Des Moines Register, Detroit Free Press and the El Paso Times, as well as newspapers in the U.K. Gannett employs 16,300 people, 85 percent of whom are in the U.S. It still has $1 billion in debt from the merger.
Gannett has not yet made an official statement regarding the cost cutting, but in the memo, Reed said these actions are necessary for the company’s long-term success.
Reed also said Gannett is suspending hiring for non-essential positions and pausing 401(k) matches. Employees can also work less hours for less pay and take up to a six month unpaid leave.
