To: Central Wisconsin Media staffers

From: XXXXX ( Central WI President )



Re: Business conditions



I think we do a pretty good job of telling you about the good things happening in the group. And certainly, you are making a big difference. But I also think we need to level with you when the news isn’t good. You are partners in what we do here, and you deserve to understand what we face.



It’s no secret that business conditions are difficult – here and across the country. Many of our customers and advertising partners are under a great deal of pressure, and that has affected our revenue.



Given this landscape, Gannett’s U.S. Community Publishing Division has asked that we reduce payroll based on our financial performance and previous cuts that we’ve made. And while we were given a reduction target, the plan to meet those cuts was developed here. We looked at existing vacancies, potential retirements and layoffs. We developed our plan with an eye toward protecting our content creation and sales capacity. Division and corporate managers are reviewing our plans.



Payroll cuts in the U.S. Community Publishing Division will result in 1,000 fewer positions, 600 of which will result from layoffs. In all, that’s about 3 percent of the division’s staffing. Worth noting: This payroll reduction effort is independent of other job reductions, such as a recent announcement that many finance functions in the company will be centralized.



In Central Wisconsin, we will reduce staffing by the equivalent of about 13 positions, a combination of full- and part-time staff members. We intend to implement those reductions before Friday, Aug. 22.



Employees affected by the layoffs will receive:

A week of pay for each year of service for full-time employees or a minimum of a two-week severance benefit.
Medical benefits will continue for the lengths of the severance period.
Employees laid off may begin to receive their pension plan and 401(k) benefits (depending on applicable laws.)
Government unemployment benefits may also begin after severance benefits end, depending on the state law.


I understand the effect that all this has. I know it’s going to be hard to see some of our friends leave, friends who have contributed greatly to this company’s growth and success. We owe them our thanks and respect.



I also know these moves create uncertainty about the future. Will there be further reductions? If so, when? Honestly, I hope not, but it will depend on whether our advertising and circulation revenues continue to decline. Ultimately, I’m optimistic. As difficult as these reductions are, I believe that if we remain focused on our core mission, we will make it through this transition.



Thank you for your many contributions and for all of your hard work.

well Redd, the question is, and only you can answer this,,, " Do you love your job???"   you have to base your decision on the answer to that question. because, as Steve said,, " life is a wink of an eye". Good luck in you whatever choice you make.   Tuck

brew

(Never love anything that can't love you back - it only leads to heartache and disappointment.)

Whats a vacation?

Whats a vacation?

Looking to 2008, ad revenues and volume are expected to be lower in most core print categories and in most newspaper markets. Continued growth is expected from online ad sales. Revenue results for 2008 will be affected by regional economic performance in the U.S. and the U.K. (key affected categories would include retail, real estate, employment and automotive), consumer confidence, by competitive forces, weakening or strengthening in the British pound-to-U.S. dollar exchange rate and the geopolitical environment.

Reported newspaper payroll costs were up approximately 6% reflecting additions to headcount from acquisitions and non-daily publication growth. On a pro forma basis, payroll costs rose 4%.

Outlook for 2008: Payroll costs are expected to decline, reflecting the impact of staff reductions in the U.S. and U.K.

Newspaper operating income: Newspaper operating income decreased in 2007, to $1.41 billion from $1.61 billion in 2006. The principal factors affecting operating income were the following:

Favorable

-   generally lower newsprint usage and prices; and

-   currency translation at a higher rate in 2007.

Ink companies announce price hike

Flint Group North America Publication Inks Division announced a crude oil surcharge of $.10 per pound, effective July 1. The increase is in response to rapidly increasing raw material, energy and freight costs, and will affect all heatset, coldest and newspaper inks sold in North America, Flint said.

Meantime, Central Ink Corp. said it will hike its prices July 1, also citing raw materials costs. The increase includes an extra $0.12 per pound on all non-heat black inks, an 8 percent increase on all non-heat colors and a 6 percent increase on all heatset inks.

"Today’s crude oil prices are more than double what they were one year ago," said Bradley J. Dahleen, vice president of sales and marketing for Central Ink. "This proves problematic for ink manufacturers because the majority of ink products are derived from crude oil and news ink itself consists of 50-70 percent crude oil."

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Gannett on Wednesday posted a 36 percent drop in quarterly profit because of a decline in print advertising sales as its revenue fell 10 percent to $1.72 billion.

Advertising revenue is also declining because of weakening economy.  On top of that, Gannett, the publisher of USA Today, the largest U.S. newspaper by circulation, faces increasing newsprint prices in the second half of the year, which may further erode its profit margins.

"The review is prompted by the ongoing and deepening declines in Gannett's newspaper revenue and Moody's concern that the company's revenue-enhancement initiatives and cost reduction actions may not be sufficient to prevent continued erosion in free cash flow over the next 12-18 months," the rating company said.

Will there be further reductions? If so, when? Honestly, I hope not, but...

Pegg, you should look at your long term desires with respect to your job and willingness to live under the cloud of layoffs.  Decide what you want and in the mean time stay at your current job while you look, if you look for a new one.  i.e. don't burn bridges.

Remember to breathe deeply and relax Peg. My limited experienc with you shows an extremely resourceful woman who is hard to keep down. By staying relaxed I think one can keep true to one's self, which is better than being a slave to our inner emotions, which may not have our best interests at heart.

Am I the only one who read this classified ad and said to herself, "THAT sounds way too good to be true"   Something fishy about it.  That dental office would have people lined up in droves for that job.