Hundreds of journalists at the country’s biggest newspaper chain resigned on Monday, accusing the company’s chief executive of wrecking a local newsroom and demanding a change at the top.
The union representing journalists said the strike was the biggest labor action in Gannett’s history. This included staff from about 24 newsrooms, including the Palm Beach Post, the Arizona Republic, and the Austin American Statesman. Some news outlets expect demonstrations to continue on Tuesday.
The collective action comes on the heels of Gannett’s annual shareholder meeting on Monday. The News Guild, which includes more than 1,000 Gannett journalists, wrote to Gannett shareholders in May urging them to seek a no-confidence vote against CEO and Chairman Mike Reid.
of letterNews Guild, criticized the company’s merger with Gatehouse Media in 2019, saying it “gained our future” by racking up debt.
The letter also criticized Reid, the former chief executive of Gatehouse Media, who succeeded Mr. Gannett after the merger. The union said his compensation ($7.7 million in 2021 and $3.4 million in 2022) was too high for the company to cut jobs and pay the remaining journalists the “reduced wages” in the letter. rice field. Gannett shares have fallen about 70% in the years since the Gatehouse merger.
“Gannett has created news deserts everywhere you look,” said USA Today Network reporter Peter D. Kramer. “That’s Mike Reed’s Gannett.”
Westchester County-based Cramer said some Gannett reporters had to take side jobs to supplement their salaries, or simply quit their jobs altogether. .
Gannett spokesman Lark Marie Anton said in a statement that while the company did not agree with Reed’s recommendation to remove him, “Gannett remains committed to its shareholder dialogue process and takes all feedback seriously.” said.
“During extremely difficult times for our industry and economy, Gannett is committed to providing competitive wages, benefits and meaningful opportunities to all of our valued employees,” said Anton. . “Our leadership remains focused on investing in local newsrooms and monetizing content as we continue to negotiate fairly and honestly with NewsGuild.”
Ms Anton said Gannett’s reporting will not be hindered during this week’s shutdown.
Gannett became the largest newspaper publisher in the U.S. after its merger with Gatehouse, and at the time the companies said the deal would deliver up to $300 million in annual cost savings and help weather headwinds hitting the news media industry. had announced.
The Gannett-named combined company, which owns USA Today and more than 200 daily newspapers in 43 states, has closed dozens of publications since the 2019 merger.
Like many local news publishers, Gannett has suffered from declining advertising and print circulation. The debt burden from the merger with Gatehouse is also weighing on the company. Gannett said in the first-quarter earnings report that he had $1.2 billion in outstanding debt.
The company has tried to pay off its debt with a series of major cost-cutting measures, including laying off about 6% of its 3,440-employee media division last December. Gannett’s workforce has nearly halved since November 2019, according to securities filings.
The Austin American-Statesman newsroom has 41 employees this year, down from 110 in 2018, according to the News Guild. Over the same period, the Arizona Republic newsroom in Phoenix dropped from 140 to 89, and the Milwaukee Sentinel dropped to 82 from 2018. 104.
“There are communities that go unreported, and when things come out, people abuse their position,” said Caitlin Kansler, a reporter for North Jersey.com and The Record in northern New Jersey. ‘ said.
News Guild Chairman John Schroyce said in a statement that Reid “has no interest in the long-term strategy of investing in a company by investing in journalists.”
“They need support and resources to ensure that communities get the local news they need to keep their democracy thriving,” Schroyce said. “Instead, Reed has had a singular focus on growing his pocket.”
Gannett announced this year that his digital-only subscribers surpassed two million. In its first-quarter 2023 earnings call, Gannett expects the company to generate a profit of $10.3 million, compared with a loss of $3 million in the same period last year, and generate annual revenue of $2.75 billion to $2.8 billion. said there is.
