MoneyWatch

paidContent - Corrected: New Owner Platinum Continues To Slash Union-Tribune Staff, Cuts 112 More

August 13, 2009 / 7:01 AM EDT / PaidContent.org

This story was written by Joseph Tartakoff.

The San Diego Union-Tribune has laid off ~~about 200~~ 112 of its employees, the newspaper tells us (A source had told us earlier that the company had cut 200 staffers). The mass layoffs come four months after private equity firm Platinum Equity—which is also reportedly trying to buy the Boston Globe—purchased the paper. Under Platinum Equity’s ownership, the paper had already laid off 192 employees in May, meaning it will have now eliminated a staggering 40 30 percent of staff since it took over. The paper will now have about ~~650~~ 740 employees.

Union-Tribune management confirmed earlier in the afternoon that there were in fact new job cuts but would not say how many. The company is also announcing a new advertising initiative aimed at small businesses and additional hyper-local coverage plans. In an article on the Union-Tribune’s website, Publisher Ed Moss says These initiatives, taken as a whole, strike a balance between our short-term economic reality and our long-term aspirations for growth and reinvention of our product.”

There had been speculation that more big cuts were coming. Platinum Equity specializes in turning around distressed companies and it hired David Black of Black Press as an advisor in San Diego. Black Press itself cut nearly a third of the staff at the Akron Beacon-Journal since purchasing that paper three years ago. Taking over the Union-Tribune‘s real estate was also thought to be one of the main drivers of Platinum Equity’s interest.

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By Joseph Tartakoff