Higher costs, economy force Tribune cuts
Layoffs come six months after aggressive expansion of editorial and distribution
Portland Business Journal - by Lloyd Woods Business Journal Associate Editor
Turning the Portland Tribune Web site into a "daily" newspaper was originally planned for three to five years from now.
But increasing newsprint prices and a faltering economy led Tribune and Community Newspapers Inc. President Steve Clark to make the move earlier this month. The paper also cut back from two days a week to one.
"We act in recognition of current U.S. economics, which are leading the nation toward recession with not only higher fuel and food prices, but also an impending shortage of paper products such as newsprint," Clark wrote in a recent edition announcing the change.
The Tribune, a free newspaper, does not release revenue or circulation figures. Community Newspapers also owns 17 suburban weeklies.
Though Clark told the Business Journal in October that the company was investing "well into six figures" into the newspaper and planning to hire more newsroom personnel.
With the move to just one printed edition each week, six newsroom employees were laid off.
Clark said printing the Tribune just one day a week will not lower advertising revenue. Clark expects the move to daily online news will bring more ad sales to the Web site.
"We're committed to both online and print revenue," he said.
However, Katie Walther, president and owner of Sherwood-based Run Spot Run Inc., a media buying firm, said dropping the printed Tribune to weekly and expanding the Web site is "not a compelling reason" to advertise on the Web site.
"They need to do some marketing behind it," she said of the Web expansion, before advertisers can trust it is reaching a large enough audience.
The Newspaper Association of America, which is based in Columbia, Md., reports that a survey conducted by Borrell Associates found that newspapers with Web sites could gain new advertising. The survey found that the largest newspaper Web sites in the United States last year achieved a majority of revenue from non-print advertisers.
Rick Seifert, a retired University of Portland journalism professor who teaches journalism part-time at Portland Community College, in his online blog "The Red Electric," questioned whether the Tribune's Web site could truly be considered a "daily" newspaper.
"It is, but only if readers turn to it each day," Seifert wrote on his blog.
Seifert said he expects newspapers will have greater online presence in the future, pointing out that his journalism students say they do not get their news from printed publications, but Web sites.
"The other question mark is revenue," Seifert wrote. "Clark's decision to drop the Tribune's Tuesday edition cuts distribution and printing costs. But producing an online daily, by rights, should increase editorial costs. All Clark says in his announcement is '... we will employ fewer people in some departments.'"
Clark said the layoffs, which included the majority of the Tribune's copy editors, make the operation more efficient. Savings from not having to print two papers each week and expected increased advertising revenue will be shared with all of the company's newspapers.
When the newspaper was launched seven years ago, it raided top talent from the Oregonian, the Business Journal and other local newspapers with the promise of high salaries. Oregonian sports columnist Dwight Jaynes was hired as publisher.
About three years ago, the newspaper ceased publishing a business section and laid off roughly one-third of its newsroom staff. Clark took over the publisher's role and Jaynes became executive editor. Last October, Clark appointed Mark Garber, Gresham Outlook publisher and Community Newspapers vice president, as executive editor of the Tribune and 17 suburban publications.
Jaynes is now editor of the Tribune. The Tribune and the suburban publications are part of the Pamplin Media Group, with also owns KPAM AM radio.
About two years ago, the Tribune and KPAM moved from downtown Portland to a 43,000-square-foot building Pamplin Media Group bought in Clackamas County. A majority of the suburban newspapers are now also headquartered in the building.
lwoods@bizjournals.com | 503-219-3480
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