The continued lay-offs at the Asheville Citizen-Times, and within the newspaper’s parent company, Gannett, provide much fodder for considering the future of your local newspaper. One possibility looks more and more likely, according to Gannett Blog, which has been all over the continued reorganization of the nation’s largest newspaper chain.
That possibility is taking shape, and Gannett Blog calls it “clustering”: the company takes newspapers in fairly near proximity and combines administrative and operating functions, all to save money. In the case of the Asheville Citizen-Times, it’s looking like more and more functions could be combined with its sister newspaper, the Gannett-owned Greenville News in Greenville, S.C. Gannett doesn’t own another N.C. newspaper.
Here’s Gannett Blog:
“The elimination of so many operating committee jobs at certain newspapers suggests that some papers may be effectively merged with others in their regions.
“… you’ve now got Gannett’s newly emerging business model: clustering. Group newspapers near each other, then drive down costs — and shore up profits — by combining operations. A single publisher oversees multiple newspapers. Ditto for advertising, IT and production directors. The latest example of that strategy: The elimination of the publisher’s job atThe Leaf-Chronicle in Clarksville, Tenn., which until a week ago was held by Gene Washer, the paper’s long-serving top executive.”
On Tuesday, Gannett gutted Asheville’s “operating committee” – the group of top level managers that runs the newspaper. Greenville is the bigger operation. So, could we have just one publisher overseeing the two newspapers? One executive editor? How about one printing press? Could Asheville just become a “bureau” operation of the centralized Greenville newspaper, with nothing but a skeleton staff of reporters, advertising sales people and delivery folks?
Who knows. The newspaper industry is desperate to find a new business model that will shore up profits. Look for more experimentation, more cuts, more changes.
9 Comments
I think that the AC-T has a chance at survival. Go back to local ownership.
Aren’t we forgetting that the Gannett model is to take a profitable property and squeeze 30% out of it as its "cut" (a la mafia)? The staffing cuts are because that although the paper is making money, it’s just not enough for Gannett to get its millions.
Independently owned, without having to make a gi-normous payout to a large multinational conglomafia, isn’t there enough profit to remain a viable entity for a local owner?
Hearing there are more cuts to be made soon so this is going to be a tiny outfit very quickly. The directors received a sweet, sweet package to basically not work for a year. Not sure how that saves money but it a nice thing they did.
On delivery, Jeff is of course right. But I’m suspicious they are just going to do what they’ve already done in the far west, which is let Rorie Ward have a monopoly … basically, the circ in this area is a franchise (I’m not explaining this well). Rory, as an independent, delivers the paper and makes big bucks for doing so. They could do the same, if they haven’t already, in Haywood, Buncombe, Henderson etc (what is that fancy name for that area? Can’t remember now ..) They’ll probably roll the administrative end to Greenville.
Frankly, they might be better off just sticking the thing in the U.S. Mail and having a few racks for the impulse buyer …
When they cut off their circulation director, they just cut off their nose to spite their face. If they can’t get their product delivered, in a reliable, provable manner, they ain’t got poo for ad sales presentation.
zipperhead, thanks for the thoughts.
You, Ash, were a very smart rat!
Correct that an investment company might purchase it. But Gannett will not be bought, just the ACT. Take note, that it would only be to show a profit and sell again. That means trimming even more and selling the real Estate would be priority one. I have worked with these investment types and believe me, one day you could show up to work only to see a big fat pad lock on the door and the sherif telling you to go home. It happens every day. Investors look at several companies every day and then decide which one to buy with the most profitability after selling off everything. Real Estate, Presses, the list goes on down to the last desk and chair. It is very rare that one of these companies does not eventually get sold off.
But, on the brighter side, maybe the company will be bought for it’s talent and go digital with the only publication being glossy magazines. Something that the ACT should have done a long time ago. I think the Ad Directors are afraid they will be replaced by Creative Directors. Wouldn’t that be something, maybe then the company would survive. Don’t worry, the Ad Directors will still have jobs getting coffee for the Creative Directors
I like Randy, Blub. He’s shown me that he’s a straight-up guy dealing with an industry in upheaval. Despite what some people have said, I’ve only seen Randy be honest and forthcoming in his dealings.
Gannett could be cutting fat, all in preparing to be bought. If Gannett is bought, it won’t be by another newspaper company. It will be by one of these investment companies that sees opportunity.
My first thought is Gannett is cutting fat and muscle to prepare the paper for sale. But what newspaper group in this climate would be in the market to buy a struggling paper? Looks like the clustering model is the option right now, with Greenville’s publisher the one who runs both, meaning Randy Hammer will be doing something else, maybe at corporate, maybe on the street. Bet he’s puckered up now with the big house payment at Biltmore Lake. If I’m a publisher I’m a renter not a buyer, but he’s a smart man, right?