Buffalo News publisher Stan Lipsey

On Friday I read with some foreboding that Denver’s venerable daily, the Rocky Mountain News (est. April 23, 1859) had folded. That same day, Buffalo News publisher Stan Lipsey sent this memo to Buffalo News staffer:

From: News Publisher Stan Lipsey
To: All News Employees
Re: Reducing expenses at The News

I’m sorry to report that, since our meetings with employees last month,  the economic picture at The News has worsened. And now, with large metropolitan papers around the nation declaring bankruptcy or going out of business, we feel we need to act quickly.

In an effort to stabilize The News’ economics, the executive team has been working diligently to reduce costs. This is absolutely necessary in order to balance the significant reduction in advertising and circulation revenue we are experiencing.  February will be the fourth consecutive month in which the company has struggled with profitability.

Those cost reductions will take many forms, but one of them, unfortunately, is the likelihood of layoffs. Today we have detailed 52 layoffs among Buffalo Newspaper Guild employees – 33 in circulation, eight in editorial, eight in classified advertising, two in accounting and one in marketing/NIE.  These layoffs may be mitigated by successful discussions between the company and the Guild, which are expected to begin Monday.  In addition, approximately 26 News employees (not all in the Guild) have accepted the current buyout offer, which has been extended until next Friday for the Guild.

Among other cost-cutting measures are a wage freeze among non-union employees, reductions in newsprint usage through the redesign of such products as TV Topics and NeXt, and the moving of Niagara Bureau personnel in to the main newsroom.  All of these new measures, and others, follow several years of efforts to reduce costs; unfortunately, those efforts have fallen short of what is necessary.

We know that we share with you the crucial aim of keeping The Buffalo News and its mission viable as we reinvent the company amidst changing times. We ask for your help, understanding and cooperation in the weeks ahead. We will be successful if we all work together.

Last fall, about a dozen of 110 employees offered buyouts (none of them in editorial) accepted them, according to a Buffalo News report last month on its own troubles. In January, the News approached 300 more employees with buyout offers of $60,000 or more. The News has about 820 employees, according to the same report.

UPDATE: The Guild has just released a response to Lipsey’s memo:

The Buffalo Newspaper Guild is extremely disappointed that Publisher Stan Lipsey would send out a memo regarding potential layoffs before the Guild has had the opportunity to work with managers to avoid these losses.

News executives would be better served working together with the union on cost-cutting alternatives that could reduce, if not eliminate, the layoff numbers. Our bargaining agreement requires both sides to discuss feasible alternatives before staff reductions are implemented.

The Guild has had a long history of saving The News money over the years. We will be working tirelessly in the coming days to do everything possible to secure both the future of The News and the livelihood of employees who have given so much to this company and this community.

The Buffalo Newspaper Guild is the largest union at The News, representing nearly 300 employees, including the newsroom, classified advertising, circulation, customer service and accounting and bookkeeping.