Gannett Cuts Employee Pay 4-6%
Friday, Jun 26, 2009
BROADCASTING & CABLE
Two rounds of furloughs not enough
By Michael Malone -- Broadcasting & Cable, 6/25/2009 9:01:13 AM MT
After rounds of furloughs and layoffs, Gannett's broadcast division is cutting most employees' pay between 4-6%. According to a memo from broadcast president David Lougee that was published on MinnPost, Gannett is exempting those making less than $30,000 from the reductions. Those making $30,000-$39,999 will see their pay cut 4%, those between $40,000 and $49,999 get a 5% cut, and those at $50,000 and above see a 6% trim.
Lougee cited major declines in auto advertising as the culprit for Gannett's fiscal woes.
"I want to thank you for the sacrifices you are making," he said in the memo, "and for the support you've provided each other during these difficult times."
The pay cuts are said to begin July 1.
In January, the company mandated most employees take an unpaid week of leave in the first quarter; in March, Gannett added a second week of furlough for the second quarter.
