Boston Globe Union Schedules Walkout, Telegram’s Parent Co. Reports 15% Decrease in Print Adv.

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Tuesday, August 06, 2019

GoLocalWorcester Business Team

There is growing uncertainty in the local newspaper industry.

The Boston Globe is facing union strife and the parent company of the Worcester Telegram reported second-quarter earnings on Tuesday morning — the numbers were grim. GateHouse Media and Gannett announce their merger on Monday — one that is expected to include $200 to $300 million in cuts.

READ ABOUT WHO IS FUNDING THE MERGER

 

Boston Globe Labor Problems

The Boston Business Journal is reporting that the union representing the newsroom and some business functions at New England’s largest newspaper is poised to walk out at lunch on Tuesday.

Maria Cramer, Vice President of the Boston Newspaper Guild (BNG), wrote in an email  to union members that at noon on Aug. 6, employees will be “walking out of the newsroom en masse to protest the company's demands for unfair cuts to our contract.”

This does not impact the Providence office of the Globe. The BNG told GoLocal, ”New initiative hires transition into the union after 60 months (five years).”

“Cramer’s email also said the union plans to file an unfair labor practice complaint with the National Labor Relations Board on Tuesday, but did not detail the basis of the complaint,” wrote the Boston Business Journal.

 

Telegram's Parent Continued Newspaper Revenue Decline

New Media revenue was down 6.9% on an organic same-store basis. The same-store trend was an improvement of fifty basis points over the first quarter.

“Traditional Print advertising revenue for the quarter decreased by 15.3% on an organic same-store basis compared to the prior year. This decline was fifty basis points worse than the first quarter,” according to the company’s press release.

Digital revenue increased 12.2% on a reported basis from the prior year to $51.2 million, representing 12.7% of total revenue in the second quarter.

Newspaper print circulation revenue decreased by 5.5% on an organic same-store basis, which was in line with the first quarter trend.

Other GateHouse revenue streams like digital, small business digital consulting and event all increased, but not enough to offset the decline of print-related revenues.

All of this after the company cut across the country and closed papers.

For the second quarter, the company who made a number of acquisitions reported adjusted EBITDA and Free Cash Flow were $47.5 million and $33.6 million, respectively, for the quarter.

In May, GoLocal reported that the latest reports are that as many as six more staffers in the Providence Journal newsroom have been cut, including sports and news staffers.

Managing Editor Alan Rosenberg did not respond to a request for comment on the layoffs.

Across the country, GateHouse -- the Worcester Telegram’s parent company -- slashed a reported 200 jobs on Thursday.

Mike Reed of the Projo's parent company told Business Insider that the cuts were "immaterial" to the company.

“Mike Reed — CEO of GateHouse’s parent company, New Media Investment Group — told Poynter media business analyst Rick Edmonds, ‘We are doing a small restructuring — at least that’s what I would call it — that I’m sure will be misreported. We have 11,000 employees. This involves a couple of hundred,’” reports Poynter.

"Today, @GateHouse_Media laid off 25% of our newsroom. We’re down to six people (including a digital editor and sports editor) to put out a paper seven days a week. Gatehouse decided we no longer needed a night editor and our executive editor. How’s this going to work? #gatehouse," Tweeted Whitney Lehnecker of the Daily Commercial in Leesburg, Florida.

In Worcester, both GateHouse owned publications -- the Telegram and Worcester Magazine -- saw staffing slashed. Worcester Magazine’s editor Walter Bird Jr. was one of the staff reportedly cut. 

Tied to those cuts was the “merging” of community newspapers in New England.

GateHouse announced that 50 community newspapers in New England will be merged into just 18.

Related Articles

• What the Experts Say About the Boston Globe and Telegram Sale
• Boston Globe and Telegram Sold - Lose 94% of Value
• NEW: Worcester Telegram, Boston Globe Up For Sale
• NEW: Worcester Telegram, Boston Globe Facing Layoffs
• GoLocal24 Names Former Boston Globe President Daniels COO
• New England Media Changes Hitting Worcester Radio, Boston Globe and WEEI v Sports Hub
• Problems Piling Up at the Boston Globe — Layoffs, Falling Circulation, and Multiple Investigations
• Head of Boston Globe’s Pressmen Union Tells GoLocal Problem is Not Theirs
• Boston Globe Early Edition Prints that Pats Lose
• Boston Globe Asks Reporters and Business Staff to Help Deliver Paper
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