Cost-Cutting, Layoffs, Wage Freezes Hit The Day

 

NEW LONDON, CT (June 8, 2008) – Independent newspaper The Day has laid off 21 full-time and 17 part-time employees, about 9 percent of the company's workforce, as a cost-cutting measure as the newspaper restructures itself, editor and publish Gary Farrugia told readers on Friday.

In addition, 14 full- and part-time job vacancies in various departments will not be filled and a wage freeze is now in place.

So far the photography department has not been touched by the layoffs, which were caused by what Farrugia called a "troubled economy" and "spiraling energy prices" combined with a 13.5 percent decline in the paper's annual revenue.

Additional money-saving moves announced include suspending the company's annual holiday bonus to employees, ending manager-level bonuses, decreasing the board of directors' annual retainer, and dropping four pages from the daily newspaper.

As with many newspapers in similar positions, the company is putting much of its current effort into building a new Web presence. Farrugia told readers that revenues from the newspaper's Web site are up nearly 33 percent over last year and that in May the paper's Web site reached a recored 1 million unique visitors.

 

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