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Publisher: Palm Beach Post Will Be "Smaller"

Mon May 05, 2008 at 08:18:52 AM

New Palm Beach Publisher Doug Franklin e-mailed a memo to staff last week indicating that he was going to cut staff -- and not in a minor way. From the memo, which was posted on the Pulp in a comment below:

We are working on plans now to become a smaller company, but one that remains a necessary part of the lives of our readers. I know that you are anxious to know how we will get smaller. Obviously, this is difficult and sensitive work, and I will communicate with you as soon as we have some specifics to report.

How unsettling. A couple weeks ago we had some staffers at the Miami Herald crying at their desks and now Posties are quaking in their boots. The Sun-Sentinel has already gone through a wave of buyouts and has been tossing about in Zell-induced chaos. But the Franklin news should come as no surprise, since previous Post publisher Tom Giuffrida warned as much before he retired. Unfortunately, all of these forewarnings can only damage morale and add to stress levels before the ax falls. Not sure that's either wise or humane.

Tough times. No end yet in sight. Here's the full memo:

Folks,

Now that I’ve completed my first month here at Palm Beach Newspapers, I felt the time was appropriate to communicate with you on the state of our company. After one month of “drinking from the fire hose” to learn about our people, our market and our business, I can see a lot of challenges, but even more opportunities ahead.

I have thoroughly enjoyed meeting each and every one of you. You’ve made me feel very comfortable here, and you all have been very welcoming. There is a tremendous amount of talent here at PBNI. In the past few years, you’ve demonstrated your ability to band together and successfully battle an aggressive competitor. Now, we need to channel our talent, determination and collective energy toward future successes here.

It’s no secret that the current state of the newspaper industry, coupled with South Florida’s dramatic real estate decline, has significantly impacted our company. In just two short years, we have lost 25% of our advertising revenue base — primarily in the lucrative Real Estate segment, but also in many categories that feed off a healthy market…such as employment, automobiles, furniture, and even restaurants.

I truly believe that our market — Palm Beach County and the Treasure Coast — promises a prosperous long-term future for us. When the market rebounds — and it will — we need to be in a better position to capitalize on this opportunity. This will require a re-tooling of our company to be more efficient in our processes, and with a broader portfolio of products to capture new readers and website viewers.

The reality is that if we do not change, we will not operate profitably this year or beyond. We’re going to have to re-evaluate and prioritize what is most important for our audience and for our advertisers. We will have to make tough choices about where we invest in our products and throughout our operation. We are working on plans now to become a smaller company, but one that remains a necessary part of the lives of our readers. I know that you are anxious to know how we will get smaller. Obviously, this is difficult and sensitive work, and I will communicate with you as soon as we have some specifics to report. I also plan to have department employee meetings during the summer with you.

We will also be working hard to turn our revenue performance in a positive direction again. But revenue performance aside, our audience numbers are stable with 50% of the market reading us in print and online — second best in the state amongst major metro newspaper companies. Among local media companies, PalmBeachPost.com reaches the largest online audience in this market. We need to leverage this strength for more print, niche and online products to drive new revenues.

We are working on plans to fix our cost structure but we will quickly turn our attention back to growing our audiences and revenues. We plan to step in to 2009 a much stronger media company positioned to withstand the current economic challenges and begin growing our business through the strong relationships we have with our customers.

We will continue to be the leading media company in print and online in our marketplace for years to come. Thank you for your continued commitment to this company, to your colleagues, and to our readers and advertisers.

Doug

Doug Franklin

Publisher

The Palm Beach Post

Palm Beach Daily News

Florida Pennysaver

La Palma

Category:

8 Comments:

Ellen Dalton's cuckold says:

It mayend up being smaller, but the Post will ALWAYS have bigger cajones than the S-S. Remember who put the public officials in prison.

ellen dalton's eteam boyfriend says:

drawers?! the post will always have bigger drawers? check yourself, cuckold.
and check yer own draws. last I heard the post was neutering itself with its reorganization that appears to be prompting a mass exodus. talk about shrinkage and draws.

Pee on Worker Bee says:

Sad news here, but what's frustrating for those "lucky" enough to keep their jobs is that they'll probably just be asked to pick up the load left from the layoffs in order to maintain the status quo.

John de Groot says:

Comes now a modest proposal:
Some brave soul should collect and publish ALL the various Dear Staff Emails written by the army of corporate asshole publishers like the Post's Doug Frankin (who couldn't carry Tom Giuffrida's jock strap -- let alone empty Jack Knight's ash tray back in the day).
The goal?
Somebody's gotta nail this chorus of smarmy bastards for singing the same sad song about (A)hard times for our stockholders, (B)the need to create a better "product" for our advertizers versus the need to cut staff and finally (C)the old "I look forward to working with you."
Oh yes.
A good title for this collection of cliched corporate bullshit might be: "Pass the KY Jelly."

In Fairness says:

A response to Mr. de Groot:

No one likes these memos, but anyone who blames the publisher for the pending cutbacks or criticizes him for leveling with his staff is deranged. Franklin's been at the Post for a month. Anyone really think these big changes are his bright idea? How would you handle the situation if the president of Cox Newspapers told YOU you had to reduce your new newspaper's operating costs by some absurd figure within the next six months?

Franklin has the decency to give the Post staff fair warning. Since when is that a sin? I'm so sorry to see Mr. De Groot is displeased that Franklin didn't brainstorm any creative new ways of communicating the same industry-wide financial problems we've been hearing about for a decade. Would he have preferred a memo in Olde English or Faulknerean stream-of-consciousness, blaming unicorn-riding fairies who steal away with newspaper revenues and convert them into star dust castles? Or perhaps Mr. de Groot cares to offer a better template?

It's fun to kick around overpaid execs, but let's face it folks: These problems are the result of a dying business model, nothing more. There's no villians here. Just victims. You can't blame the dinosaurs for the Ice Age and you can't blame newspaper publishers for the Internet Age. Anyone who thinks the industry could have or should have done anything to prevent this is embarassingly naive. And if I'm wrong, let them unveil their silver bullet here.

The point: Let's stop pointing fingers and endure this with some dignity. Every publisher who announces cutbacks isn't a souless prick and every old ink-stained crank who had to fortune to work in simpler times isn't a wise old sage. Modern publishers are just unlucky and most cranks are just old.

what? says:

this has nothing to do with the current business woes, which are nothing new. it has more to do with the current strategy to gear everything to the web site, which is the worst in south florida. and the person running the show, not frank but someone whose name isn't even worth mentioning, doesn't even know what a fucking web site is, let alone how one works.
so sorry to see the paper and talented reporters wither away.

Gregori Putznik says:

In the old country, we would call such men as the new breed of newspaer executives "Uhkers".
Which makes Palm Beach Post Publisher David Franklin a COX UHKER.
The Uhk, for those of you not familiar with hard times in Mother Russia, was a large work sleigh used by the peasants.
During bad winters, huge packs of starving wolves would attack the peasants in droves -- causing the peasants to pile into their ox-driven Uhks to flee in terror.
Sadly, the wolves were faster than the lumbering ox that pulled the heavy Uhk sleighs.
And so, in order to survive,the peasants would toss one of their weaker members to slow the howling beasts.
Later, during Stalin's frequent purges, Party leaders would survive by turning in a lower party member to the KBG for Stalin's firing squad, or death in the Siberia.
Naturally, these powerful party members who survived by tossing their weak to Stalin's wolves became known as "Uhks."
Which is why Doug Franklin, as a Cox publisher, is a COX UHKER.

Anonymous says:

i don't get it gregori, how is this franklin's fault? he's just dealing with economic realities, ain't he?

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