Gannett Blog: Bulletin: Gannett announces 700 newspaper layoffs

Gannett Blog: Bulletin: Gannett announces 700 newspaper layoffs: "U.S. newspapers division President Bob Dickey distributed the following memo today to more than 20,000 employees at virtually all Gannett'..." This morning (Sunday, July 24, 2011) I did not get my local Gannett Sunday morning newspaper the Hattiesburg American ... this happens so very frequently I'm on a first name basis with the Circulation Department, so frequently earlier this week I emailed the General Manager and was told delivery of the American is 'contracted out'! Her statement as copied and pasted: "Thanks so much for taking the time to email me with your concerns about the Hattiesburg American’s delivery. As General Manager, I am ultimately responsible for all operations here at the newspaper. I agree 100% that our delivery service is not what it should be. About 3 years ago, the Hattiesburg American made the decision to contract out the delivery of the newspaper. We now have contracts with three delivery Agents responsible for the delivery of the Hattiesburg American, the Clarion Ledger and the USA Today. This decision has been beneficial in many ways but has made it much harder for me to manage the delivery process. Please know that I am working diligently to improve our service." Like thousands of other locals I have elected to not renew my subscription when it expires in eight or so weeks. Being a life long resident of the Hattiesburg, MS I have read the paper all my life, as a child in the 1930's we - my older sister and younger brother - were required to read the American and be able to discuss items published in the American over dinner. My father came to Hattiesburg in 1924, my mother in 1925, they insisted on our being aware of what was happening ... they insisted that we all get good educations, sending us out of state to universities, my brother to Europe. I have always looked forward to reading newspapers, when traveling I always pick up USA Today, NYTimes, WSJ and very often local papers. It is disgusting to me that over the past four or five years too often the American has not been delivered, and let me say, I live in the city limits in a middle class subdivision on a lake with paved streets and street lights within 5 to 10 minutes from two Universities. For 70 years our family owned and operated a business that regularly advertised in the American, some years we were the single largest advertiser. The Newspaper Advertising Bureau (NAB) on a number of occasions selected Waldoff's advertising as some of the best in the United States awarding us plaques, trophies, certificates at conferences in New York City, Chicago and Los Angeles. Currently I do consulting for retail stores nationally and purchase advertising for clients, often we use newspaper where the demographics, circulation and coverage merits. Having said that, it is not surprising newspaper advertising sales are down on a local and national level for Gannett, I understand the dramatic impact the weak economy, Internet and television has had on the industry, regardless when the product cannot be delivered to those of us who want to receive their local paper, pay for their subscription in advance and still don't receive the paper ... the question is not what can be done to increase advertising sales, rather it is how soon before the paper stops publishing? It will! If I were a stock holder in Gannett I'd bail out when the market opens tomorrow morning, there is no potential upside for a company that does not deliver its product to the consumer. Additionally, I read the news release of July 18th: "Gannett Co., which publishes USA Today and more than 80 daily newspapers, reported a 22 percent decline in its second-quarter net income on Monday ... " In this news release the COO responding to a question was quoted as saying: GRACIA MARTORE, CHIEF OPERATING OFFICER: "With regard to newspaper ad trends during the quarter, I'd say obviously April was a little bit better month because of the later Easter, and also we had some things earlier in the quarter in the U.K. that helped numbers. I think June actually was a better month sequentially. So felt good about the way we closed out the quarter, and I'd say as we look into July, the sense we've gotten, and remember, it's extremely early in the quarter, is that things are perking along about in the same way. A little bit of improvement here and there, certainly nothing that looks less satisfying than what we achieved in the second quarter. So I think overall the quarter is getting off to the same sort of momentum start as the second quarter ended." The COO says he 'felt good about the way we closed out the quarter" ... down 22% in net income? Mr. Martore talked like a member of Congress, talking out of both sides of his mouth, spinning facts, not addressing the issue, ending on a positive note! ... as if he were talking to people that didn't have the ability to understand his bull shit. I found that type rhetoric insulting! Goodbye Gannett! Goodbye Hattiesburg American! Respectfully, Milton Waldoff Hattiesburg, MS