http://seattletimes.nwsource.com/html/businesstechnology/2004095833_newspaper28.html
Somber memo warns of cuts ahead for Times
By Kristi Heim
Seattle Times business reporter
The Seattle Times faces “the most difficult and painful downsizing” in its history next year as millions of advertising dollars continue shifting to the Web, Times Publisher Frank Blethen told employees Thursday in an unusually blunt internal memo.
Mirroring declines at newspapers across the country, The Times expects to see its print revenue drop a total of $33 million for the years 2007 and 2008, Blethen wrote.
Senior executives have found ways to shave $21 million in costs for the coming year, but another $6 million in expenses will have to be cut, the memo said. Blethen did not say how those cuts would be achieved.
“With the company at bare bones, these cuts will hurt deeply going into 2008 and the remainder of the decade,” he wrote.
Despite the financial challenges, Blethen wrote, his family is committed to continuing its ownership role.
The options are selling the paper, closing its doors or transforming the business “to a smaller, more focused organization. ... “
“For better or worse, my family has chosen door number three,” he wrote.
Times spokeswoman Corey Digiacinto said next year’s budget decisions are still being finalized and no details would be announced until after the first of the year.
“There will likely be some difficult cuts, but this is a temporary situation until we can realign our business model to match the changing revenue picture,” she said.
Blethen said he would not comment on a message intended only for Times employees.
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ping
“There will likely be some difficult cuts, but this is a temporary situation until we can realign our business model to match the changing revenue picture,” she said.
It just spells “doom” so well.