The Los Angeles Instances introduced on Tuesday that it’s going to furlough some business-side staff and that senior managers will take pay cuts, as promoting income has been “practically eradicated” as a result of coronavirus pandemic.
The corporate can even droop its 401(ok) match for non-union employees, in line with an organization memo despatched by Chris Argentieri, president of the California Instances.
“Because of the sudden results of COVID-19, our promoting income has practically been eradicated,” Argentieri wrote. “Whereas we’ve made important progress in rising our digital subscriber base and growing different sources of income, it isn’t but sufficient to offset the losses. The economic system is in disaster and it’s turn out to be clear that we have to make some troublesome modifications with a purpose to meet this problem.”
The information comes on the identical day that Valence Media, the company dad or mum of Billboard and The Hollywood Reporter, undertook a spherical of layoffs as a result of pandemic.
On the Instances, the furloughs are set to start on April 19 and can last as long as 16 weeks, in line with the memo. Senior managers on the enterprise aspect and the editorial aspect will take pay cuts of 5% to 15% for 12 weeks.
The announcement didn’t have an effect on employees lined by the Los Angeles Instances Guild, which represents newsroom staff.
“We are going to meet with union representatives to find out any expense-saving initiatives which may be applied, associated to represented staff and current contracts,” Argentieri stated within the memo.
The Guild posted a statement on Twitter, saying it was “troubled” to be taught of the cost-cutting measures.
“The Guild plans to satisfy with administration quickly to be taught extra and to induce full help for our information operations throughout this international emergency,” the union stated.