Posted by chicagomedia.org on January 08, 2009 at 15:49:55:
Sun-Times Media closing a dozen suburban papers
By: Ann Saphir
Jan. 08, 2009
(Crain's) - Sun-Times Media Group Inc. plans to fold 12 of its suburban papers as it seeks to trim expenses amid plunging advertising revenue.
The company, which operates the Chicago Sun-Times and dozens of suburban papers, also wants to lay off as many as 15 unionized workers in its suburban newsrooms, a union official said. Those cuts are subject to negotiation with the Newspaper Guild.
"I'm very sad, on so many levels," said Lynne Stiefel, who chairs the Chicago guild unit that represents newsrooms for the company's Pioneer Press group. "It's people losing their jobs, but you are also talking about residents losing access to information about their communities."
The 12 weekly Pioneer Press publications slated for closure Jan. 15, most of which serve the northwest suburbs, are: Algonquin Countryside, Arlington Heights Post, Cary-Grove Countryside, Des Plaines Times, Elk Grove Times, Hoffman Estates Review, Mount Prospect Times, Niles Herald Spectator, Palatine Countryside, Proviso Herald, Rolling Meadows Review and Wheeling Countryside.
Pioneer Press, acquired by Sun Times in 1989, currently publishes 51 papers serving Chicago's suburbs, according to a list on the company's Web site.
Sun-Times Media, which didn't provide details on how much the shutdowns will save a year, reported a $168-million loss in the third quarter. The closures are part of Sun-Times Media's push to cut $50 million in expenses this year. On Wednesday the company asked members of all its unions to take a 7% cut in compensation to help reach that goal.
Sun-Times Media trimmed $50 million in expenses last year, a move that included dozens of newsroom layoffs and the closure of a handful of papers. But those cuts weren't enough to restore profitability. The company says the additional $50 million in expense reductions should bring it back to break-even.
It will close its Algonquin office in the next few weeks and its Arlington Heights office by the end of February, sources close to the matter said. Employees will be moved to the company�s Glenview office.
"Pioneer Press has eliminated some unprofitable titles as part of a previously announced Sun-Times Media Group Inc. plan to reduce companywide expenses on an annual basis by $45 million to $55 million," a company spokeswoman said in response to a query from Crain's. "There will be some headcount reductions associated with this action."