News-Leader lays off 19 to reduce expenses

by Linda Russell, KY3 News

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By Gene Hartley

SPRINGFIELD -- Another sign of the slowing economy is layoffs at another local business that's been around for years.   The Springfield News-Leader dismissed 19 employees this week.

  It's technology like the Internet that's in part to blame for a slowdown in business at the newspaper.  The way people get information is changing.

   Gannett, which owns the News-Leader, announced at the end of October, that it would cut 10 percent of its workforce.  The nation's largest newspaper chain has 84 daily newspapers and more than 800 non-daily local papers.

  On Tuesday, 19 workers at the News-Leader learned their jobs would be part of the cuts. Employees received severance packages, up to 26 weeks, according to their years of service.

  “I do a pretty specific job there, so I didn't think it would be me.  I never dreamed it would be me,” said Emily Hymer.

  But, after almost two years in the News-Leader's accounting department, Hymer faced the unexpected.

  “I saw the paperwork sitting on her desk, and I knew right then that it was me,” she said.

  The newspaper put a news release in its business section.  It said declining advertising revenues and the economic downturn brought about the layoffs.

  Jonathan Groves is a Drury University instructor who used to work for the News-Leader.  He’s studied the recent changes and tough times for the media.

  “It's pretty much across the board.  Newspapers are getting hit the hardest, because reading habits have changed.  Newspapers have been hit especially hard because of Craigslist, and that's taking a lot of the classified ads, because they just can't compete, because Craigslist offers classified ads for free,” said Groves.

   The drop in revenue, such as 32 percent in Gannett’s third quarter, led to the cut in expenses.  At the News-Leader, employees say, on top of the recent layoffs, six people were cut in August and some open positions were not filled.

  “Whenever the first round of layoffs was going on, everybody was really scared: ‘Oh my gosh, are they going to do it again tomorrow?’” said Hymer.

  And there have been other reductions that are plain to see.

  “There have been size changes in the paper.  There have been three in the time I've worked there, and they've gone to smaller size papers, but the advertising costs are still the same,” she said.

  “The balancing act for newspapers, I think is going to be, trying to find that balance between having enough people to do the job well, and controlling costs so that you can make a profit,” said Groves.

   Groves believes newspapers are finding different ways to compete on their Web sites but the revenue from online is just not making up for the revenue lost in print.  That’s why they have to cut expenses and lay off employees.

  News-Leader publisher Tom Bookstaver declined to make any further comment than the news release.

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