Bad news for the employee-owners at Sam Zell’s Tribune Co.: Up to 500 of them, or 2% of workforce, are losing their jobs. Tribune-owned LA Times, has the details: The paper will lose up to 150 positions, 50 of them in the news room. The Chicago Tribune says it will lose 100 jobs. From Zell’s memo, via Romenesko:
In my recent email about the ESOP, I outlined the assumptions we made in developing our projections for Tribune’s financial performance going forward:
– Cash flow in line with that of 2007
– Newspaper revenues continuing to decline
– Broadcast and interactive revenues increasing.
While results so far in broadcasting and interactive are promising, we have not had time yet to realise these gains. Further, a weak economy and significant declines in advertising volume at our newspapers are putting downward pressure on our cash flow. These factors are forcing us to take immediate action, and are the basis for the sense of urgency you’ve heard me talk about so often.
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