Layoffs looming at MediaNews Group

In a profile of Journal Register Company CEO John Paton, who was given control of MediaNews Group in September, the New York Times points out that the strategy that has made the Journal Register Company’s newspapers so successful is no magic bullet.

Rather, it involves tried and true strategies: “outsourcing most operations other than sales and editorial, focusing on the cost side that might include further layoffs, stressing digital sales over print sales with incentives, and using relationships with the community to provide some of the content in their newspapers.” (Our emphasis)

Journal Register Company has increased its online revenue more than fivefold since Paton took over, doubled online traffic, and supposedly made $41 million in profits in 2010 (pre taxes, depreciation, and amortization). That has not come without cost: staff is down 16.5 percent, since Paton joined in 2010. Now it looks like the same tactics might be coming to MediaNews.

Source: Media Bistro