The Star Tribune announced it would cut another 100 jobs yesterday, as the Minnesota paper attempts to reduce costs in its struggle to stay above board, only recently emerging from bankrupcy protection.
Editor Nancy Barnes said in a memo to staff that about 30 of the cuts will come from newsroom and editorial departments. The layoffs are expected to reduce the Tribune's newsroom by nine per cent, and Barnes said they would take place across a two month period.
The paper filed for Chapter 11 bankrupcy protection in January earlier this year after lisitng a debt of between $500 million and $1 billion. Steep drops in ad sales and falling circulation numbers were blamed for the paper's predicament.
In late September the Tribune managed to surface from banckrupcy protection, with its main creditors swapping $480 million in money owed for ownership of the paper.
However, despite its renewed breathing space the paper is continuing to search for ways to save funds including applying to cancel its subscription with the expensive Associated Press news wire service. Several other papers have similarly given notice to cancel their AP subscriptions and the Tribune co. newspaper chain announced it would trial reporting without the service altogether this week.
The Star Tribune job cuts are just the latest in a series of changes to take place at the paper, and whilst most were expecting the move, many are surprised at the final number of reductions to be made. Graydon Royce, arts reporter and co-chairman of the Minnesota Newspaper Guild said: "I had always thought of something like 10 or 15 being a realistic number... Thirty people losing their jobs is a big deal."
Whilst when exactly the company will reutrn to profit is hazy, the paper is sure it will generate enough cash to fund operations and repays its debts as it works to devise a new growth strategy, part of which includes a redesigned website for next year.
Since 2006 the Star Tribune has reduced its workforce by 40 per cent, some 779 full-time employees, a move that has helped it to save $91 million in costs.
Source: Star Tribune, Editor & Publisher


