The News & Observer will eliminate about 20 jobs in the latest cost-cutting effort by the Raleigh-based media company.
The staff reductions announced today will affect most areas of the company, including the newsroom. Some employees will have the opportunity to accept voluntary severance packages, but a few positions will be eliminated through layoffs.
The newspaper publisher continues to see declines in print advertising revenue, mirroring similar trends nationwide. Online ad revenue is increasing, but is still a smaller part of the total.
"Although our declines are not as steep as they have been in previous years, revenue trends remain negative year-over-year," publisher Orage Quarles III wrote in a memo to employees this morning. "As a result, we must continue to look for ways to offset this trend by managing expenses.
"We understand how difficult this message is to receive given other reduction programs we have done over the last few years," he wrote. "However, we are working hard to implement new products and improve our revenue performance to help us navigate through these difficult times."
The latest staff cuts follow last week's weaker quarterly earnings from the parent corporation of the N&O, The McClatchy Co.
Total revenue for the first quarter was $303.7 million, less than analysts had expected and down 9.5 percent from the same period a year earlier. Ad revenue was off 11 percent.
Despite steady improvement in the broader economy, many recession-weary advertisers aren't ready to resume buying ads, especially in traditional newspapers.
The Sacramento, Calif.-based company publishes 30 daily newspapers nationwide, including the Miami Herald and Charlotte Observer, as well as dozens of weeklies and other publications. Other papers in the chain also continue to reduce their workforces to match revenue declines.
Others announcing job cuts this week include the Miami Herald and Kansas City Star.
On a conference call with Wall Street analysts last week, CEO Gary Pruitt noted that "every McClatchy newspaper is profitable."
Assistant Business Editor Alan M. Wolf joined the N&O in 1999 covering the business of health care. He became an editor in 2001, and helps oversee the paper's daily business coverage and Sunday Work&Money section. He lives in Clayton with his wife and two children. Reach him at 919-829-4572 or
Comments
N&O outstanding
Tue, 05/03/2011 - 16:15 — FlowerpowerThe N&O is an outstanding newspaper with an outstanding staff. Many cities the size of Raleigh have papers that are just not this good. It's a darned shame any N&Oer has to go. And, I must say Ann BLythe has done an outstanding job on the Cooper trial.
N&O outstanding
Tue, 05/03/2011 - 16:15 — FlowerpowerThe N&O is an outstanding newspaper with an outstanding staff. Many cities the size of Raleigh have papers that are just not this good. It's a darned shame any N&Oer has to go. And, I must say Ann BLythe has done an outstanding job on the Cooper trial.
Feedback
Tue, 05/03/2011 - 14:58 — dp123Please keep your talented team of investigative reporters: Joe Neff, Mandy Locke, Steve Riley, Dan Kane and Andrew Curliss. They have the highest integrity and perform public service. I look for their stories and blogs every day.
I am disappointed that Anne Blythe, who is a court reporter, ignored the crime happening in the Wake court. There is a court document in use by the superior court clerk that is not approved by the Administrative office of the courts. The document is an unlawful transfer and appeal document. Cases cannot be both transferred and appealed to superior court. In addition, the unlawful document is in violation of a federal statute Title 42, Section 1983 which requires that due process is given to defendants. There is a story here. It's not as salacious as a murder trial, but it needs to be covered.
it's still the tocsin
Tue, 05/03/2011 - 14:15 — ktuscanEquality and justice to the underpriveleged.
Sad fact of economic times
Tue, 05/03/2011 - 13:44 — The_Nags_HeadThis is sad news as the N&O has, I believe, improved greatly over the past couple years (I've been reading it since the late '50s) with many good stories and even a bit of investigative journalism.
There have been a few missteps - the initial coverage of the Wake County school board for instance - but otherwise the paper has been on an upward path.
Sad, also, as these 20 job represent people who, I believe, probably worked very hard and contributed greatly to the paper. I can only hope they find new jobs soon.
Smh.....
Tue, 05/03/2011 - 13:37 — AtmosphereFANLoosing your job is nothing anyone should laugh at or take lightly, no matter the industry, but the News and Observer, like many traditional periodicals have known for close to 15 to 20 years that the digital revoluation in media would have a huge impact on their industry. And for them to still not find a way to be flexible and thrive from the changes in media, I'm almost happy the company isn't doing quite so we'll. The N&O is, and can be quite slanted to a particular political ideology or pander to the mood of the people. I'm not sure of any major newspaper in the country that doesn't have a particular bias, but I really wonder why they run stories such as these without sharing with us the true and legitmate reasons why these layoffs are occurring. They have no problem printing off the saleries and position titles of those who work for the State of NC, or strictly moderating their news online, disabling commenting sections such as the Crystal Mangum murder story that ran a few weeks ago. Why doesn't your parent company, The McClatcy Company release its sales figures and show us the numbers that support making a move where you'll be dissruppting the lives of those in the newsroom and throughout the N&O as a whole?
It's all about advertising
Tue, 05/03/2011 - 13:09 — abechtel1These layoffs have nothing to do with perceptions of bias. The critics of the N&O were saying the same thing about bias in the 1990s, when the paper was making tons of money because the economy was doing well.
These layoffs have everything to do with advertising. Look at today's newspaper. It has two pages of classified advertising. Ten years ago, classified was its own section of 12 pages, or more. That cash cow is out the barn door forever.
At the same time, more people are reading the newspaper's stories and seeing its photos than ever, thanks to online media. Unfortunately, advertising there isn't as profitable as it is in print, and paywalls are a risky proposition.
It's a difficult time for journalism, and my thoughts go out to the hard-working people in the newsroom. They live here, and they raise their families here. Show a little sympathy.
How's that Hope & Change
Tue, 05/03/2011 - 13:01 — PhantomLordHow's that Hope & Change working out for Obama's biggest mouthpiece in NC?
Hope & Change Indeed
Tue, 05/03/2011 - 14:09 — DB_NCGood one! LOL
N&O to eliminate about 20 more positions
Tue, 05/03/2011 - 12:45 — bluemold0Good
Grim Realities in a Real World
Tue, 05/03/2011 - 12:08 — AgentPierceI am an outspoken opponent of The N&O relative to their (IMO) overt partisan bias well beyond their op/ed dept. I will continue to be so I suspect. Those affected by staff layoffs rarely determine the journalistic direction of the enterprise. They might be considered "collateral damage".
Would the N&O stop/slow its steep revenue decline if it adopted a more mainstream approach to its news reporting? I doubt it. The decline is primarily a techno-driven effect. That said, I applaud The N&O for reporting their on-going business travails. I'm not sure they HAVE to do so. It does open them to second guessing.
FWIW .... McClatchey lays-off employees they cannot afford to retain. It is a grim bottom-line reality. Isn't that the same grim reality facing the NC GenAssem? Yet the N&O continually criticizes such actions by the GenAssem leadership. Hypocritical ???
The other side
Tue, 05/03/2011 - 12:53 — AnglicoI've been a critic for the exact opposite reason ... too much water-carrying for Art Pope and the Puppetshow. Too much Ricky Martinez.
Of course, Mr. Quarles has and would say "we must be doing something right if both sides criticize us." Unfortunately, that conclusion is wrong on every level of analysis you could engage. Choosing a powerful and clear position is the only winning strategy in todays fragmented media marketplace. The N&O is at risk of standing for nothing.
That said, I suspect you're right about this being a pure technology problem. Without a powerful position going into the brave new digital world, the N&O had no momentum to build on. Indeed, the opposite was true.
Your comparison of this private business to government is absurd. The N&O has little capacity to increase revenues. Government could ncrease revenues easily by closing tax loopholes, stepping up IRS enforcement, restoring higher income taxes on millionaires, and stopping our ridiculous wars (Iraq, Afghanistan, War on Drugs).
There are two sides to every balance sheet. The N&O can't affect its income - its only choices involve costs. That is a matter of fact.
The government could easily affect its income. Not doing so a matter of choice, not necessity.
What?
Tue, 05/03/2011 - 16:30 — nancyncAnglico posts in part: Choosing a powerful and clear position is the only winning strategy in todays fragmented media marketplace.
And all these years I thought the media was supposed to present unbiased coverage of the news. Learn something new every day ;)
New columnist?
Tue, 05/03/2011 - 13:22 — abechtel1I agree that Martinez is overexposed. He's already news director at WPTF and a host on that station. Why does he need a newspaper column too?
I suggest that the N&O approach Mike Munger, Duke professor and former Libertarian candidate for governor. He'd be a good columnist and offer a different viewpoint. Plus, he has a great sense of humor.
I'm quite sure Rick's being
Tue, 05/03/2011 - 15:08 — AgentPierceI'm quite sure Rick's being an N&O columnist is not an act of charity by The N&O to address his "needs". He was an N&O contract columnist (not a full-time employee) long before his WPTF days.
A "columnist" is a very arbitrary element in any newspaper. They are purposely "predictable" in their POVs. I simply ignore the ones I find objectionable.
You don't like Rick but you DO like Dr Munger ??? Thats a very interesting perception. I happen to like both gentlemen.
Art & "absurd"
Tue, 05/03/2011 - 13:15 — AgentPierceI'm sure Art & Rick will enjoy your "favored son" description from The N&O. I'll give you a dime for every word Rick has written if you will give me a nickle for every word op/ed editor Steve Ford has written.
As for my being labeled "absurd" by you. THANK YOU. That's a high compliment from a hard-core opponent. :>).
Poor Orage ... pillored so by his own side.
New Team?
Tue, 05/03/2011 - 12:28 — MissVThey will do anything but reinvigorate the top with new blood.