The downsizing at The
Plain Dealer likely was predictable when
the Newhouse family -- billionaire owners of
the Cleveland newspaper -- brought Terry
Egger (in 2006) and Susan Goldberg (2007)
here as publisher and editor, respectively.
The paper, we learned last week, planned to
reduce the number of pages by 35 each week.
That's a significant reduction. It
means 1,820
fewer news pages during a year. The
cuts, suggesting particularly bad judgment,
call for eliminating one of two opinion
pages.
The plan also calls for a 20% reduction in
the editorial workforce. That is also
significant
and follows a recent buyout that reduced the
PD's news staff by 17%.
"Pretty gloomy," says a reporter of the
staff morale. Reductions likely mean
layoffs,
and no or small pay increases. Younger
reporters are most worried, it is said.
Both recently hired bosses -- Egger and
Goldberg -- have had experience eliminating
staff at other news outlets. I'd
speculate the Newhouse decision to hire them
was tied to their experiences
in handling downsizings elsewhere.
Egger, whose full name is Terrance C. Z.
Egger, was recruited here by Robert
Woodward, former president of Pulitzer Inc.
Woodward also worked the sales deal that
resulted in the famed Pulitzer news chain
and the St. Louis Post-Dispatch being
sold for $1 billion.
Both Woodward and Egger became
multi-millionaires as a result of their work
in completing the Pulitzer sale.
The Newhouse family was part of the Pulitzer
sale. Newhouses' Advance Publications
had a deal with the Post-Dispatch to
share 50% of its profits after closing a
competing newspaper in St. Louis. The
Newhouses apparently liked the way Woodward
worked the deal and then employed him
to seek a replacement for PD Publisher Alex
Machaskee. Woodward selected Egger
Goldberg was brought here as the PD's first
woman editor, from the San Jose
Mercury
News last year.
She was the executive editor and a
vice-president of the newspaper that had
recently changed ownership twice. So
she, as Egger, came from a newspaper that
had changed hands.
Goldberg had experience also in reducing a
newspaper's staff.
In 2005, the Mercury, under Goldberg,
lost 16% of its newsroom staff with 52
buyouts. In 2006, under Goldberg,
there was another reduction in the
Mercury workforce of 101 with 40
editorial positions eliminated for another
8.5% cut
Thus, she has had experience in sharp
staff reductions.
There also remains a question of whether
severe cutbacks at the PD are preparation
for a sale. It is a subject of
discussion at the paper. The PD faces
and economically declining city and the
Newhouses are anything but sentimental when
it comes to business.
The St. Louis Journalism Review
reported on Egger's substantial financial
success at the Post-Dispatch...
"From various
company reports and government filings,
these figures were gleaned: Egger
got $3.2
million in cash for stock-based
compensation when Pulitzer was sold.
He got a Lee (newspaper) retention bonus
of $675,000 and a $75,000 transaction
incentive. He could get as much as
$900,000 to cover taxes associated with
his extra compensation. Add a
$197,000 bonus in lieu of 2004 stock
options, and a $112,5000 performance bonus
and a $283,013 from his supplemental
pension plan.
"His common stock at Pulitzer was valued
at $11.4 million... and there's probably
more," the reporter noted at the time.
You earn that kind of money by making hard
decisions for the boss. Egger is the
man the Newhouses choose to make those hard
decisions.
So The Plain Dealer has been set for staff
reductions and they will take place over
time.
Newspapers nationally are in a financial
crunch and workforce reductions have become
common. Some blame the Internet for
the newspapers' reduction in advertising,
thus their revenues.
Others see bad business decisions and a
failure to change as the reasons for the
decline of newspapers. Still others
complain that newspapers fail to offer
pertinent news that would make it essential
(for you) to read a paper daily.
All this may foretell the death of
newspapers as we have known them.
They are weak voices, often useless in their
prime function -- to tell you What is
happening, Why it is happening and
Who is making it happen. The three
Ws of a strong-voiced newspaper.
This decline is especially true of the local
press. One can get information on
national and international news from various
sources -- maybe not the best, as evidenced
by the debacle of the Iraqi ward -- but
there are alternative sources aplenty, if
people are willing to seek them out.
You can't have a democracy without the
essential information about what is going on
in your community. It's the lubricant
of free speech and debate... Without
it, you don't have a functioning democracy.
Nor can you have a society of equality.
The lack of information breeds inequality.
The constant retreat by newspapers -- by
eliminating news pages and experienced staff
-- suggests the need for radical change.
One outcome of the daily newspaper's retreat
may be more alternative news outlets in
print that provide narrower selections of
coverage -- publications that don't depend
on mass audiences. They may be
dedicated to coverage, say, of just courts,
or only politics or certain governmental
bodies, or real estate development in all
its ramifications. Others might be
limited to our crucial community activities
and seek only limited audiences.
These publications wouldn't have to be
produced daily. They would likely
have Internet outlets. Nationally, Politico, a small "newspaper" of
politics provides a model. It has
national political coverage on a website and
also distributes a printed form three days a
week.
Ironically, in a way, we might be going back
to the rise of news in colonial times...
when vigorous and partisan journalism
thrived in small publications.