Cost-cutting review underway at Tribune newspapers
Tribune Co., parent of the Los Angeles Times, is examining its operations in an effort that is likely to result in staff reductions at the company’s daily newspapers.
The company acknowledged a cost-cutting review is underway after Chicago business blogger Robert Feder wrote late Thursday that Tribune may slash as much as $100 million in expenses from its eight daily newspapers.
A Tribune spokesman called Feder’s report “grossly inaccurate” and said the company has not set an expense reduction target. Tribune’s budget analysis comes as it prepares to spin off its newspapers into a separate entity.
“Everything is on the table, as it is every year,” Tribune spokesman Gary Weitman said. “...This is the normal budget process that we go through annually.”
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Management is looking to minimize journalist job cuts to protect the quality of the content, according to people familiar with the matter. The review is expected to be completed by early December.
Tribune has lost an average of $99 million in print advertising revenue in each of the last two years, according to public filings. That’s a 14.5% decline since 2010. Print ad revenue fell an additional 8% in the first half of this year.
The newspapers have shed about 1,900 jobs in the last three years and 110 positions so far in 2013, according to company filings. Tribune employs about 11,500 people at its television, Internet and newspaper properties.
In addition to the Los Angeles Times, the company’s newspaper holdings include the Chicago Tribune, Baltimore Sun, Orlando Sentinel and South Florida Sun-Sentinel.
Tribune announced in July that it planned to separate its newspapers from the company’s other assets. Tribune’s owners — investment firms Oaktree Capital Management, Angelo, Gordon & Co. and JPMorgan Chase & Co. — intend to concentrate on their more profitable TV and digital properties. In July, Tribune unveiled a $2.7-billion deal to buy 19 television stations.
Times staff writers Joe Flint and Andrew Tangel contributed to this report.
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