Newspaper giant Gannett announced Monday it will begin furloughing employees across the country over the next three months to cut costs during the economic slowdown caused by the novel coronavirus.
The Hill reports, “the publisher of more than 100 newspapers, including USA Today, the Detroit Free Press, The Columbus Dispatch and The Arizona Republic, is reportedly furloughing workers who make more than $38,000 a year and they will be required to take one week of unpaid leave per month in April, May, and June, according to a tweet from investigative reporter Gregory Holman of the Springfield News-Leader in Missouri, a Gannett-owned paper.”
New today: @Gannett announced unpaid newsroom furloughs of 1 week per month during April, May and June. We’re told journalists earning more than $38K are subject to the plan. This is prompted by COVID-19
— Gregory Holman 📲📰 (@GregHolmanNL) March 30, 2020
In a memo obtained by The Washington Post, Gannett Chief Executive Paul Bascobert told staff on Monday that while subscriptions and audience engagement was up, the company expects revenue to ‘‘decline considerably’’ in the second quarter and that the involuntary leave was the way to address the difficulties ‘‘head on.’’
“Direct sold advertising has already slowed and many businesses have paused their scheduled marketing campaigns,” Bascobert wrote.
Gannett was acquired in August 2019 by GateHouse Media for $1.4 billion.