Telegraph loses eight to layoffs, buyouts

Oct 03, 2008 (The Macon Telegraph - McClatchy-Tribune Information Services via COMTEX) -- MNI | Quote | Chart | News | PowerRating -- Eight jobs in various departments at The Telegraph are being eliminated through buyouts and involuntary layoffs, the newspaper announced Thursday.

The downsizing effort follows a smaller round of staff reductions that took place in June.

The most recent plans to eliminate positions were announced at a companywide meeting two weeks ago.

All employees in Thursday's announcement were offered a severance package based on years of service.

Among the employees leaving are Phil Dodson, a 40-year newsroom veteran and staff editor for the editorial page whose job was eliminated. Danny Gilleland, a 37-year veteran and senior photographer most recently working out of the Warner Robins bureau, was among the employees who took a buyout, according to Telegraph Publisher George McCanless.

Other departing employees come from the newsroom, as well as the finance and advertising departments.

"Ending employment relationships with friends and colleagues is the hardest decision anyone ever has to make," McCanless said in a e-mail sent to employees early Thursday evening.

"Unfortunately these actions were necessary based on both the current economic climate here in Middle Georgia as well as the structural and business changes going on in our industry."

In June 2001, eight people were laid off from The Telegraph. That followed 17 layoffs and the elimination of 23 jobs overall in 2000.

In recent weeks, The McClatchy Co. has cut its workforce as well as its shareholder dividend.

McClatchy, in its 151st year, is the corporate parent of The Telegraph and 30 other daily newspapers. It is America's third-largest newspaper chain.

Like most every chain, McClatchy is struggling with a media revolution. Its newspapers, where it still makes most of its money, are losing ground to the Internet. McClatchy also is deeply in debt due to its $4 billion takeover of Knight Ridder Inc. in 2006. Its debt load is now about $2.1 billion.

In June, McClatchy announced that it would eliminate 1,400 jobs, many through the company's first-ever mass layoffs. In recent weeks, another 1,150 jobs were cut. Staffing will fall to about 10,500 by the end of 2008. McClatchy also imposed a one-year wage freeze.

Last month, McClatchy cut its quarterly dividend by half, to 9 cents a share. That will save another $30 million a year, which the company will put into debt repayment.

McCanless could not confirm how much cost The Telegraph aimed to cut through the staff reductions, but he said, "A lot of it is factored in with how well the revenue's doing."

He said there are no plans for future layoffs.

"I was disappointed that we had to do it this time after we had some staff reductions a few months ago," he said. "Unfortunately, the deteriorating business climate demands that we go to this extreme. It is my fervent desire that business starts growing again and we can level out."

Employee reductions will be combined with new initiatives to increase The Telegraph's revenue, he said.

"Things we are doing include later this month taking over the delivery of the Atlanta Journal-Constitution in our market area. ... Other strategic initiatives are the new Charles E. and Kenny B. radio talk show."

McCanless said there are plans to purchase a larger inserter machine from The Modesto Bee and take over inserting operations for The Ledger-Enquirer in Columbus. There are also plans to combine the newspapers' finance departments.

He said there are no plans to further reduce the size of the print version of the newspaper.

"McClatchy specifically said they did not want to further reduce newshole," he said.

This article includes information from staff reports. To contact writer Ashley Tusan Joyner, call 744-4347.

To see more of The Macon Telegraph, or to subscribe to the newspaper, go to http://www.macon.com Copyright (c) 2008, The Macon Telegraph, Ga. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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