Gannett Warns Of More Unpaid Furloughs; Layoffs AvoidedFor Now
This story was written by David Kaplan.
Given its continuing financial woes, it's not surprising that Gannett is requiring more unpaid leave for its 41,500 global workforce. Jim Hopkins' Gannett Blog has the news, including chairman and CEO Craig Dubow's memo detailing the latest bid to save costs.
Staffers earning $90,000 and above will be furloughed for two unpaid weeks in Q2. Those employed at the McLean, Va., headquarters are required to take one unsalaried week off; they'll also will have a temporary pay reduction of to one week's paycheck. The move comes at an embarrassing time for Gannett (NYSE: GCI). Considering all the outrage over large bonuses at failing companies these days, Hopkins notes that Gannett's board just reported that it authorized $2 million in all-cash 2008 bonuses to Dubow and the other top four executives. The news seemed to cheer Gannett investors, who sent the stock up about $0.15, or 7 percent, to $2.29, though it could have been rising the general uptick in the market.
By David Kaplan