Thursday, August 14, 2008

Newspaper Stock Jumps 11 Percent after Layoffs

Gannett, one of the largest newspaper chains in the United States, is part of an industry-wide slide when it comes to stock prices. Seven companies this year hit their all-time stock lows, not a good sign for anyone involved in the media.

The good news is Gannett's stock rebounded by 11 percent. The bad news is that jump came after the company announced a staff reduction of 1,000 across its properties.

It's a stinky, dire time if you make your money churning out words on a page (although it's a great time if you understand computers and how business works in a digital world). McClatchy, another on of the big media outlets, said that it wouldn't be laying folks off -- they should just get used to whatever they are making right now. A wage freeze is on the way in September (so get your raises now).

The advertising downturn, which could reach three years in a row for the first time since newspapers started collecting data, isn't getting any better -- at least for companies that chop down trees. That has sent nearly ever paper scrambling. The Palm Beach Post announced its 300 person reduction -- 264 who volunteers -- was almost complete. Those trying to hang around better hope they have "required skills, past performance and organizational needs" ready to go.

That's newspaper code for: technology skills, a history of not being a pain in the ass and technology skills.

The future of the newspaper industry isn't telling stories, it's building communities and seeding information. As soon as the industry gets that, it'll stop having its stock prices jump because of layoffs.

Posted By Brad at 07:04 PM
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