Posted by chicagomedia.org on March 26, 2009 at 13:05:52:
Daily Herald faces another round of cuts
Doug Ray, president and chief executive of parent Paddock Publications, told staffers of the Arlington Heights-based Daily Herald in a memo Wednesday that revenue declines have yet to level off, requiring another round of cost-reductions "to maintain enough profit to satisfy credit obligations and ensure that our newspaper remains strong" in the recession.
The company has eliminated 24 positions, according to Ray's memo. For those remaining, there will be no raises and wages - which have been reduced before - will drop another 5 percent. Employees will have to take one day off without pay each month through July. Night differential is being eliminated, holiday pay reduced and mileage reimbursement drops from 40.5 cents per mile to 30 cents.
Ray noted Paddock's overall audience was growing, but so was the challenge of increasing revenue through the Internet and other platforms "during the harshest economy since the Great Depression."
While warning staff not to "underestimate the immediate need to weather the economic storm," Ray expressed confidence the company will "emerge not simply a survivor but with a bright future ... different but more focused and in the end better prepared to deal with opportunities that lie ahead."
(Phil Rosenthal, Chicago Tribune)