Star Tribune To Reduce WorkforceMinneapolis/St. Paul - (May 7, 2007) - The Star Tribune Monday announced plans to reduce its workforce by about 145 employees across the company, primarily through voluntary buyouts.
Publisher and CEO Par Ridder, who announced the plans in a meeting with employees, said reducing costs is necessary to adjust to a rapidly changing media environment.
“Revenue has been declining since 2004 and we need to respond to that reality,” Ridder said. “The newspaper business model has changed and this restructuring will allow us to align more resources with what readers and advertisers are demanding from us. Through this process we will be increasing resources focused on local content and advertising products, in both print and online.”
Ridder said the Star Tribune is facing the same challenges as most other major metropolitan newspapers, many of which already have implemented buyout and layoff programs.
The buyout and layoff program is just one of many efforts being made by the Star Tribune to reduce expenses throughout the business. Those efforts also include streamlining work processes, not filling open positions and reviewing contracts with outside vendors. The planned job reductions at the Star Tribune, which employs about 2,100 people, will reduce the total labor force by 7 percent and will affect all parts of the company, including the newsroom.
A voluntary buyout program has been proposed to the Newspaper Guild, the union that represents journalists. Editor Nancy Barnes said she will be restructuring the newsroom and will operate with about 50 fewer employees in what is now about a 375-person news and editorial operation.
“This is difficult, but we join many newsrooms in having to restructure for changing times,” Barnes said. “We will continue to deliver a deep, rich state and local news report every day, whether readers want to get that online or in print. In fact, in the restructuring, we'll be shifting more reporters to local news, in-depth news, and online information gathering than we had before these staff reductions. And we will still have by far the largest news gathering operation in the Upper Midwest region.”
Ridder said voluntary buyouts will be made available to some other departments across the company, and some jobs will be eliminated. Overall, about two-thirds of the cuts are planned to come from the voluntary buyout plan. Employees leaving the company under the plan will be eligible for severance packages that include extended benefits.
“The steps we are taking today are difficult but necessary,” Ridder said. “We are focused on making the right restructuring choices to ensure our service to readers and advertisers remains excellent in spite of our current business climate.”
About the Star Tribune
The Star Tribune is a news and information company serving the Minneapolis/St. Paul area. The Star Tribune newspaper is one of the top 20 largest newspapers in the nation. The company’s website, www.StarTribune.com, is the most frequently used local news and information service for the Twin Cities market. The Star Tribune is owned by Avista Capital Partners, a leading private equity firm with offices in New York and Houston.
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Contact Ben Taylor
Phone: (612) 673-7457
Email: btaylor@startribune.com
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