Another day, another round of devastating cuts at GateHouse Media, the national chain that owns more than 100 newspapers in the Greater Boston area. Don Seiffert of the Boston Business Journal is keeping track, and so far he’s counted “at least six journalists at the Providence Journal, another six at the Worcester Telegram & Gazette, and several more at the New Bedford Standard-Times and the Herald News in Fall River.” Yesterday afternoon brought this instant classic from Worcester Magazine’s Bill Shaner:
According to Seiffert, stockholders on Thursday rejected a proposed $1.7 million compensation package for GateHouse CEO Kirk Davis. The chain is losing money despite cutting its community newspapers ruthlessly, which suggests that there’s going to be more bad news to come.
Benjamin Goggin, writing at Business Insider, noted that this week’s layoffs follow at least 60 earlier this year. Although it’s not clear how many people have lost their jobs nationally in the latest round, Newspaper Guild official Andrew Pantazi tweeted this morning that he’s compiling a spreadsheet and has counted about 80 so far.
Goggin also talked with Michael Reed, CEO of New Investment Media Group, GateHouse’s parent company, who denied rumors that the cuts could reach 200 — and dismissed this week’s downsizing as no big deal. Goggin wrote:
When Business Insider talked to Mike Reed, CEO of GateHouse’s parent company New Media Investment Group, he downplayed the cuts, calling them “immaterial,” without providing a specific number of cuts but denying the 200 number, calling it “a lie.”
“We have 11,000 employees, a lot to me is 2,000,” he said.
Later, though, Reed semi-confirmed the 200 figure with Poynter’s Rick Edmonds, although he said most of them would remain employed and “are moving from non-reporting to reporting jobs.” So let’s just say the head count is unclear.
Goggin also reported that New Media announced Thursday it will continue its $100 million stock-buyback program for another year. Isn’t that special?