Posted on 10/10/2008 7:51:51 AM PDT by abb
Associated Press' memo to staff
09-Oct-08 As the current financial crisis continues, some staff may have concerns about how AP will weather the downturn. Here are answers for some of the questions you may have.
What is the financial health of AP? AP is on solid financial footing, thanks to modest revenue growth and responsible expense management over the past few years, which have resulted in a positive cash flow. That in turn has allowed us to fund important investments in technology and in our infrastructure, including a new office in Washington and a critical renovation in London. We have also made substantial progress in funding pension plans. In addition, we are debt free.
AP's revenue sources are also diversified, which everyone knows is a critical strategy in difficult financial periods. Nonetheless, these are very challenging times. While newspaper revenue accounts for a lower proportion of AP's total revenue than it has in the past, it still represents 25 percent of our revenue and so remains important to us. With the heavy economic difficulties the media industry is facing, and the new rate structure being rolled out to our newspaper members under Member Choice, we are facing a some shots of scotch challenging 2009. We remain financially secure, but our cash flow will be affected and, as a result, we will be cautious with new initiatives while looking for opportunities to economize.
What is the financial health of AP's pension plans? The good news is that direct exposure to the financial institutions that have been in the news lately is minimal in our retirement plans. In addition, AP's retirement plans are monitored closely by AP's Investment Management Committee. The committee meets regularly to make sure that all regulatory funding requirements are met. Moreover, investments in both the defined benefit pension plans and defined contribution plans are recommended and monitored by the specialized investment consulting firm, Rocaton Investment Advisors. Nonetheless, staffers enrolled in retirement programs where employees are directing their investments are encouraged to take a long-term view and a diversified approach to investing. Vanguard, the company that administers the defined contribution plans, is working with us now to make advisory services available to employees. More information will follow about these programs soon.
What steps is AP taking to address the current financial climate? As the economy falters, it is imperative that we keep spending in line with revenue. Given these economic times, AP, like most companies, is being prudent about hiring and spending. This week, we instituted a company-wide strategic hiring freeze, which we will re-examine regularly. In addition, we are looking at spending on every level. We'll keep you updated with any additional developments.
http://www.nypost.com/seven/10102008/business/too_many_want_to_fly_the_coop_at_star_le_133021.htm?page=0
TOO MANY WANT TO FLY THE COOP AT STAR-LEDGER
http://www.businessweek.com/magazine/content/08_42/b4104090904327.htm
The Sucking Sound of Ad Dollars Disappearing
http://www.mediapost.com/blogs/on_media/?p=274
Media and Advertisers In Damage Control
http://business.timesonline.co.uk/tol/business/industry_sectors/media/article4916337.ece
Whether it’s Fortune, Time or Loaded, it all boils down to content
ping
I read between the lines and started making phone calls to find another job. A week later, I was laid off by my company.
I was back at work the next week.
The moral of the story here is that when your bosses tell you (with no reason) that your job is safe, start looking for a new job because you are one step out of the door already.
I am sure the kick back from the obama campaign will probably save many jobs.
Well, until a sizable portion of newspapers stop paying their dues, which they will apparently know a complete two years before the occasion, the AP doesn’t have to worry.
Unfortunately for the newspapers, they don’t have such luxuries.
And, “manufacturing” news surely could keep them in business???
Looks like AP is about to lay off 4-5oo people next week.
Right! and all the big investors are bailing out leaving their underlings with nothing.
I’ve seen this before.
Like a baseball manager getting a vote of confidence from the owner.
is being working so far,or don’t you agree?
Wonder how current financial problems are impacting advertising for Newspapers like the NYT?
One could only hope that they would be the first news organization to go belly up.
If a paper goes bankrupt, or out of business, its subscription to AP is gone immediately.
When you have to stretch you food budget...
When you can’t afford to fill your car with gas ...
When you can’t make the mortgage payments...
The FIRST thing you would do is cancel your paper subscription
Many, many papers are walking dead. If they really had to
value the subscriptions due at mark to market they would be
bankrupt.
How many other companies in the recent few weeks have we heard as being on solid footing that are sunk right now?
WaMu, Lehman, AIG................
http://www.businessweek.com/magazine/content/08_42/b4104090904327.htm
The Sucking Sound of Ad Dollars Disappearing
Newspapers and magazines have already been hit, and hard. Even network TV and luxury advertisers may not escape this recession
Exactly correct. “Buying the ball scores”, i.e. paying for AP or other wire service subscriptions is one of the first things a smaller newspaper or radio station will cut, since their markets are local anyhow. AP is whistling past the graveyard here.
Hiring freeze is instituted, and don’t worry about those icebergs around us and banging into us.
We are perfectly safe.
“The moral of the story here is that when your bosses tell you (with no reason) that your job is safe, start looking for a new job because you are one step out of the door already.”
The company, from which, I got an excellent early retirement option from, spent the entire year telling us that our jobs were perfectly safe.
We had an AIG type of meeting at Disneyworld in late September and the same bs that there is no problem was put out.
About 10 days later in October, the world came out that our corporation was buying a partner and a competitor. That company had so many poison pill options to protect its sales and management staff. Our company offered the early retirement plan to about 10% of us, which, we could take in December and would officially kick in Jan 1 the next year.
I took the option. Several friends refused the option and listened to the bs that their jobs were still safe. Before January was over, many of the employees of the other company were released, and probably at least a third of our employees were whacked without the great option I got.
Several of my friends in the home office were stopped at the gate the day after they got emails at home or voice message calls about the impending cuts. They were sent to rented trailers in a previous abandoned parking lot. The trailers were brought in during the night.
The trailers were filled with HR people and other temp thugs including security. The people about to be fired stood outside in a light rain/sleet until they were called in.
When they went to the desk where they were told to go to. There was one or two Kinko boxes with their personal belongings in the boxes. If they signed the papers then, they got an extra month or two of salary. If they didn’t sign, they were terminated with 2 weeks pay and whatever unused vacaion they had.
Then, they went to vans with security people and were driven to their cars and told to leave the parking lot. If they didn’t, the local cops came up and told them to leave.
http://www.portfolio.com/views/blogs/mixed-media/2008/10/10/hearst-folds-cosmogirl
Hearst Folds ‘Cosmogirl’
http://www.heraldtribune.com/article/20081010/ARTICLE/810100329/2107/BUSINESS?Title=Herald_Tribune_trims_20_jobs_amid_downturn
Herald-Tribune trims 20 jobs amid downturn
http://www.mercurynews.com/alamedacounty/ci_10681329?nclick_check=1
To our readers
Alameda Journal
Article Launched: 10/09/2008 05:10:26 PM PDT
To our readers
The rising cost of newsprint and other expenses associated with the newspaper industry have forced us to make changes to the publication schedule of the Alameda Journal. Oct. 21 will be the final edition of the Tuesday Alameda Journal. We will continue to publish the Journal every Friday, however, and many of the news features and columnists previously found in the Tuesday Journal will appear in the Friday Journal instead.
http://thephoenix.com/BLOGS/notfornothing/archive/2008/10/10/black-friday-at-the-projo.aspx
Black Friday at the ProJo
http://www.marketwatch.com/News/Story/Story.aspx?guid={5B04BE5A-4E6F-4C67-ABC5-4872EF55C194}&siteid=nbih
Viacom cuts outlook to reflect troubled ad market
I just don't understand that.....
When the boss or client tells you that you have their 100 percent support...think on the scale of 1000 percent.
Thus you are 9 / 10th out the door.
I worked one job for a few years, they told us next year was looking good, the older ones said kiddingly, hold on to your wallet. Sure enough about a month later they laid off about 10% of the work force. Later on they said they might have to lay off some people, about a month later we all were working 30 hours overtime a week.
http://biz.yahoo.com/ap/081010/usa_today_price_hike.html?.v=1
USA Today price rising to $1 on newsprint costs
“I’ve always wondered why it was expected for us to give our companies two weeks notice when we were going to quit but they could terminate our employment with no warning.
I just don’t understand that.....”
Both as a manager and a consultant, I have recommended that unless a person is retiring or moving out of the area with a spouse, that employment is over when employees give their notice. A couple of younger relatives, wished they had listened to that advise.
On the flip side, two weeks to 4 weeks pay when that person gives notice can prevent some bad events later on.
If the person is fired for economic reasons and not lack of merit on the part of the employee. A minimum of one weeks pay for each year worked up to about 26 weeks total separation pay is an honorable thing to do.
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