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Citing "the continued and increased loss of traditional newspaper revenue," The Seattle Times said it will cut 200 jobs and slash $15 million from its budget in the next two months.
In an e-mail from Publisher Frank Blethen and COO Carolyn Kelly, the 200 reductions will be made "through a combination of freezing open positions and a significant number of layoffs."
In a story on the Times' website, newsroom staffers were told that up to 45 editorial positions would be eliminated, and "at least 16 employees will be laid off, and the number could be as high as 30." The story also said the Times will stop publishing separate suburban zoned editions. The Times currently employs 1,845 people.
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In a separate e-mail from Alayne Fardella, senior vice president, business operations, she said there could be up to 49 people laid off in the newsroom. (Her e-mail follows Blethen's.)
In December, Blethen said the Times' print revenue losses for 2007 and 2008 will total about $33 million.
The trade journal Editor & Publisher recently reported that, in the past four years, the top U.S. newspapers have collectively slashed their daily circulation by about 1.4 million copies. Meanwhile, Wachovia Equity Research estimates that newspaper advertising -- already in steady decline -- is expected to fall 8.2 percent this year.
Blethen and Kelly's e-mail appears below:
From: Company Communications
Sent: Monday, April 07, 2008 12:30 PM
To: All Seattle Times
Subject: Message from Frank Blethen and Carolyn Kelly
Date: April 7, 2008
To: Seattle Times Employees
From: Frank Blethen and Carolyn Kelly
Due to the continued and increased loss of traditional newspaper revenue for both The Seattle Times and the Seattle P-I, we will be making necessary expense reductions. Our circumstances are in line with the newspaper industry nationally, which continues to see steep declines particularly in areas of Classified ad revenue and also a slowing of online revenue growth.
We had hoped the expense reductions made at the beginning of the year would prevent the need for further downsizing, but that is not the case. The only responsible action to take is to better align our expenses to the reduced revenue we now anticipate.
The SOC team has identified approximately $15 million in budget reductions that will be implemented over the next two months. These include significant changes to the way we do business and involve realignment and centralization throughout our organization. You will hear more about the specific changes in departmental meetings.
The most difficult part of these changes involves a reduction of our workforce of approximately 200 positions through a combination of freezing open positions and a significant number of layoffs. This is not an action we take lightly -- we recognize and regret that these decisions have a considerable impact on people's lives.
Most affected employees are being notified today. In certain job categories, Expressions Of Interest (voluntary separations) are being considered, so there will be some continued uncertainty over the next two weeks until the EOI process has been completed. Alayne Fardella will send out a follow up communication with additional details.
While this is difficult news, it is important to note that the Seattle Times Company and the brands we represent remain market leaders. Our audience reach in print and online is deep and broad in the greater Puget Sound. Strategic and thoughtful changes to the way we do business will allow us to be positioned for the future.
Our success is based on our public service mission and our people. We are grateful for each individual's contribution toward sustaining The Seattle Times as an independent and meaningful voice in our community far into the future.
Fardella's e-mail follows:
Date: April 7, 2008
To: All Employees
From: Alayne Fardella
Subject: Reduction in Force
A Reduction in Force is a painful event in any organization. Regardless of whether you are an affected employee or the colleague of one, separation from the organization or from a teammate is difficult. Please use the resources available in HR to help you through the unavoidable stress in the coming weeks.
I'm sure you have many questions and I know your department head or manager has planned to have detailed conversations with you. The intent of this memo is to provide some general information for your reference including:
Description of Expression of Interest (EOI)
Approximate Number of Employees Impacted by Department
Timeline
Severance Package for affected Unaffiliated Employees
Next Steps
Expression of Interest
An Expression of Interest, or EOI, is an opportunity for employees in selected work areas to volunteer to be considered for separation from the company with severance benefits. Availability of this opportunity will vary by department and work area, as business needs are different.
We believe that employees who may want to leave should be given consideration, unless an employee's unique skills and experience, or some other prevailing business need, prevent us from accepting an expression of interest. We will take every EOI request seriously, but not every EOI can be accepted.
Any employee making a decision about whether to submit an EOI will be considering many different factors. It is important to note that Department Heads and Managers will not view the submission of an EOI as disloyalty to the company or to co-workers and will keep all submissions confidential.
Number of Affected Employees per Department
These numbers are approximate and are very likely to change after the EOI
process is complete.
Department
Frozen Positions
Reduction in Force
Total
Advertising
16.5
24
40.5
Circulation
2
45
47
Corporate Marketing
4
3
7
Finance
1.5
5
6.5
HRG
1
3
4
Information Technology
6
12
18
New Media
5
-0-
5
Newsroom
19
30
49
Operations
5
9
14
Total
60
131
191
Timeline
Monday, April 7
Department Meetings
Expression of Interest (EOI) offered to select workgroups
Employee Notifications in non-EOI work groups
Monday, April 14
EOI submissions hand-delivered due to Department Head by 9:00am
Tuesday - Monday, April 15 - 21
Final remaining Employee Notifications
Monday, May 5
Final day worked for most affected employees
Severance Package
The severance package being offered to unaffiliated employees appears below.
We will propose the same package to the applicable unions and hope to quickly reach agreement. Years of service are rounded up to the nearest quarter (.25) year.
Severance Benefits
Years of Completed Service
Weeks of Base Pay
COBRA Benefit
Less than 1
2 weeks
Applicable premiums subsidized 50% for up to 3 months.
At least 1, but less than 5
1.5 weeks per Year of Service (with a minimum of 2 weeks' pay)
Applicable premiums subsidized 50% for up to 6 months.
5 or greater
1.5 weeks per Year of Service (with a maximum of 26 weeks' pay)
Applicable premiums subsidized 50% for up to 12 months.
Unemployment Compensation
The Seattle Times will report to the Washington State Employment Security Department that all affected employees' employment was terminated due to a Reduction in Force.
Some additional Information
Our benefits packages will be changing beginning August 1. As insurance costs continue to rise, we will likely be making some adjustment on cost share and structure of plans. We will continue to be competitive in the marketplace and more detail will be forwarded to you in the coming weeks.
You will have plenty of time to make your decisions.
Next Steps
Acknowledge how difficult all of this is for you and your colleagues
Recognize there will be uncertainty and anxiety during the next few weeks
Read over the materials you may be given and refer any questions to your
manager or your HR manager.
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