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Wall Street Meltdown Pales In Comparison To Daily Newspaper Industry Fiasco
Amid worsening Wal Street headlines this week, the daily newspaper industry is doing its best to maintain its dominance as the most distressed industry in the capital markets. Just this week, the following news stories have appeared in the headlines:
• Tribune and its blustery CEO Sam Zell are being sued by Tribune employees for mismanagement of the business.
• McClatchy is eliminating another 1,150 jobs (10% of its employees) and slashing its dividend in half in its ongoing, never-ending effort to adjust costs to more appropriately fit a rapidly deteriorating revenue base.
• Newhouse announced that it might be forced to close the Newark, N.J. Star ledgere in January after failing to reach an agreement with one of its key unions.
• The Star-Telegram in Fort Worth announced that it is selling its headquarters to salsh costs and raise some cash.
• Gannett is cutting 100 management positions (on top of the 1,000 employees it cut in August) and restructuring its Community Publishing structure. In a letter to employees, Community Publishing President Robert Dickey stated that expenses were outpacing rrevenue ‘threefold.’
It’s shocking that despite Lehman’s collapse, Merrill’s forced sale, and AIG’s bailout, not to mention whatever dominos might be falling next in the financial sector, that the daily newspaper industry is still in worse shape.