Gannett announces COVID-19-related furloughs and other cost reductions

The already-barebones Gannett newspaper chain has announced massive COVID-19-related cost reductions through June, according to a memo to the staff from Maribel Perez Wadsworth, president of news and publisher of USA Today.

Employees making more than $38,000 will be furloughed for five days during each of the three months. Wadsworth says she will take a 25% pay cut, although I don’t know what she’s making now.

Wadsworth’s portfolio includes Gannett’s local newspapers and websites, including the former GateHouse properties in Eastern Massachusetts, Rhode Island and New Hampshire. Here is a list. The memo, which I obtained from a trusted source, was accompanied by an FAQ, which you can read here. The full text of her email is as follows:

All,

Let me first acknowledge all the incredible work you’ve done in the face of this pandemic that is, without a doubt, also taking a toll on your personal lives. Our strong audience and subscriber response this month show how much people rely on our news and information to make key, critical decisions that impact themselves and their loved ones.

As you’ve seen the havoc wreaked on our nation’s and the world’s economy, so too, is the uncertainty around the coronavirus outbreak increasing financial pressure on our own company. As businesses close and live events cancel across the globe for the next few months, we are seeing many advertisers and sponsors reducing or even eliminating their marketing spend. With the current pressures and so much uncertainty, it’s difficult to chart our next steps for more than the next few months.

To meet this unprecedented challenge, we are instituting a series of immediate cost reductions, including a furlough program in April, May and June across our division.

We do not take this action lightly; we know furloughs cause hardship. All of Gannett’s divisions are approaching this challenge differently, but after careful consideration of other options, we felt this was the best approach for our team.

Importantly, we will not furlough employees who earn less than $38,000 annually, and different policies will apply to a few teams whose business was impacted more severely by recent events. We are asking union representatives for their support of the furloughs as well. Senior leaders whose absence would put our integration timeline and key business operations at risk have agreed to a pay cut in lieu of a furlough (but equal to the amount each month). I will be taking a 25 percent reduction in salary during the quarter.

Furloughs will be for five business days each month of the second quarter. Exempt employees must schedule each furlough for the full business week, while non-exempt employees can be scheduled by the week or in full-day increments. Managers will approve furlough schedules to balance business needs during this time.

Your supervisor will be sharing more specifics and working with you to schedule your furlough as soon as possible. The attached FAQ should also help answer many of the questions you might have. You will see an invite from me momentarily for an Ask Me Anything session this afternoon at 2 p.m. Eastern. Please join if you can, and please submit any questions in advance to xxx.

We will get through this unprecedented challenge together. We will emerge stronger. We will continue to do important, impactful, essential journalism to serve our readers and communities. I am deeply grateful to each of you.

Sincerely,
Maribel

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