Posted on 08/17/2007 1:17:27 PM PDT by abb
Editor Charlotte Hall stood in the newsroom of the Orlando Sentinel and began reading out names. The names were the latest in a growing list of those who have been laid off from the newspaper—some after decades of service. Several people said she mispronounced some of the names; others said she was just nervous as her eyes moved from the piece of paper with the list of names to glance around at the crowd that had assembled. The best estimate is that between two and three dozen newsroom employees accepted buyout offers, which struck at lower and middle ranks but which kept top executives firmly in their jobs. Days later, in a small story in the Saturday business section, an item announced that an undisclosed number of non-newsroom employees would also be laid off. Insiders say that all together the layoffs approached 100—nearly 10 percent of the newspaper’s total staff.
These are sad days at the once-proud Sentinel. Those departing fell into two groups. Some were targeted because they were no longer wanted. Others were selected because the job they were doing is no longer considered necessary. Those let go ranged from young reporters to some of the most recognized people in the business. Jack Snyder, a 40-year veteran and one of the best real estate writers in the country, left. Chris Cobbs, the paper’s talented high technology writer, departed even before the layoffs. The Sentinel is still hiring, replacing veteran journalists with youngsters who will work for less money than the people they are replacing.
The layoffs follow a perfect storm of bad news for the paper. Some is related to its own performance, some to the troubles of the industry and some to the problems of its parent company, Tribune. And the latest round of layoffs doesn’t mean another round is not around the corner. In fact, some of the people who accepted the buyouts in this round did so because the offer was generous and they worried that the next round might not include any severance or benefits.
The industry’s problems are well known. Beginning in the 1980s, circulation numbers dropped at some newspapers. At first, newspapers said it was because people didn’t have time to read. When the Internet caught on, it provided yet another reason to explain circulation declines.But the Sentinel was particularly hard hit. In fact, as a percentage of population, the Sentinel has lost more circulation than any newspaper without newspaper competition in the country. The paper once flirted with a daily circulation of 300,000, but now it is in danger of falling below 200,000.
The Internet is a major problem. When people say, “I don’t read the newspaper anymore,” what they are really saying is, “I don’t read the print edition of the newspaper anymore—I read it online.”Many papers are trying to migrate to the Internet and take the readers and advertisers with them. It is difficult, and absolutely no one knows how it will end up. It’s sort of like moving the SunTrust Tower from downtown Orlando to Bithlo. The first question is, “Can it be done?” and the second is, “What do you do with it when it gets there?”
The Sentinel has its own set of problems. A growing and increasingly diverse population has forced the newspaper to cater to many groups. For example, you might not care about news in Puerto Rico, but as the newspaper tries to attract some of the thousands of Puerto Ricans moving here each year, the paper has added a healthy dose of news aimed at them.But few people outside of journalism realize how difficult it is to attract readers. Newspapers have tremendous churn. Just to stay in place, a newspaper might have to sign up 1,000 new readers a week to replace those who stop taking the newspaper.
For a time, the Sentinel thought it had found salvation in the hotel industry. The newspaper got hotels to give guests copies of the newspaper. But a fight with the tourism industry and changing rules within the industry cost the Sentinel that refuge for keeping up its circulation numbers. Without that, the paper has had to start looking for people to buy the paper each day.
The rounds of layoffs have not only cost the newspaper much of its talent, they have understandably made many of the remaining newsroom staff members wonder what will happen next. Some local companies say they have been put in an uncomfortable spot when being interviewed by some reporters. The reporter will ask about employment with the company, leaving the executive to wonder if saying no will hurt their portrayal in the story. But the newspaper has struggled through a morass of ethical problems, and this is just another. As if those problems were not enough, the Sentinel’s parent company is facing a long list of problems. First, revenue throughout the company is dropping. In May alone it was off 11.1 percent. And the decline comes as the company is trying to float billions of dollars in bonds.
Chicago developer Sam Zell purchased the company for $8.2 billion earlier this year, but Zell only put up about $300 million and is floating bonds not only for the rest but also for additional debt. In all, it amounts to about $11 billion in bonds. The company offered to buy back its stock for $34 a share. Stockholders eagerly responded, and 92 percent of the company’s shares were offered. It meant that the shareholders thought that $34 was the best price they were going to see. They apparently were right; since then the stock has lost about 13 percent a share. The company still needs to sell about $4 billion in bonds later this year. It has financing lined up, but if things get worse, the deal could run into serious problems.Tribune now has to meet payments on huge amounts of debt and will be looking to its newspapers and broadcast stations to pay the bills. Under the law Zell used to buy Tribune, his ability to sell properties is limited without paying significant taxes.Tribune does not release figures on its individual properties, but the Sentinel remains a very profitable company with the kind of profit margins most companies would love to have.
ping
Death from a thousand paper cuts!.......
“Honey..hows your fathers trust fund holding up..?? ...I may have to leave the liberal coccoon and go out into the real private sector for a job...”
There are probably more people in the ‘hole that is Orlando reading “El Nuevo Dia” than read the Sentinel.
HONEY: Don't worry sweetheart! It's all invested in Sub-prime Mortgage Companies!.................
The “sad Day” was when the Tribune bought the Sentinel Star and it went from being an objective high quality newspaper to being the “Slantinel Star” courtesy of the many young journalists sent to Orlando from the Chicago headquarters. Those young reporters quickly came with the understanding that, if they didn’t toe the liberal line, their careers would end in Orlando. The paper has always denied this, of course, but if you read any news story it becomes instantly obvious. More obvious even than the change in the editorial pages.
In mid May 2007, I saw only 14 housing rental listings ever made on base.google.com real estate listings for the Orlando metro area. Today, there are hundreds of rental listings on google base for metro Orlando.
The classifieds in the Sentinel have shrunk to nothing. The paper has shrunk to nothing.
And the paper hasn’t had a decent columnist since Reese retired.
The Sentinel abandoned the locals in favor of the newcomers about 10 years ago. Now we have a constant stream of diversity shoved down our throats, all to cater to a demographic that could care less. I bet they NYT sells more papers in Orlando than does the Sentinel.
The Sentinel will hire very senior citizens to man kiosks at drugstores, in attempts to GIVE the paper away. I always get strange looks when asked if I want one and tell them NO!
This is good news. Think of all the trees that will be saved.
So, do they have a Spanish-language section Or just expect they all should read English? "Diversity is our strength."
My time share condo used to give out this paper everyday I was there. This year, it was no longer given out. Guess they pissed off a major buyer of their papers.
Just as well! As the last time I read it, EVERY single day for the whole week, was a front page article on the gay community and their growing buying power in Orlando. I mean, it covered most of the front page and several pages inside, all about gay this and gay that. After 3 days, I threw it straight in the trash.
In perspective, the region grew 200-300% percent before the housing bust. The Sentinel has lost 33% of its subscriptions.
We can't wait to feed on those soaked in alcohol pink meat liberal mediots!
thanks for the ping
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