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Arizona Republic’s Parent Company to Cut Salaries, Start Layoffs Following $54 Million Loss

August 10, 2022

By Corinne Murdock|

Gannett, parent company to the Arizona Republic, will commence layoffs and diminish salaries following a poor second quarter last week.

Gannett, which also owns half of the Arizona Daily Star, said in a press release that this “significant cost reduction program” would help pay down $150 to $200 million of their debt. The media conglomerate reported a net loss of $53.7 million, or over 7 percent of its margin. Gannett also experienced a 7 percent decrease in revenues, despite digital revenues increasing 1.5 percent to make up 35 percent of total revenues.

The Tucson Sentinel said that its sources confirmed that Gannett tasked managers with layoffs. Poynter sources clarified that salary cuts will have a 10 percent minimum, and that layoffs begin on Friday. 

These layoffs will come, despite Gannett’s participation in initiatives like the Big Tech-funded program, Report for America, which supplied and covered portions of reporter salaries at 21 of its papers, including the Arizona Republic. The paper has hired three Report for America reporters so far. Report for America received an undisclosed sum of $5,000 to $50,000 from Gannett.

Report for America covers at least half of its reporters’ salaries the first year, a third of their salaries the second year, and just under a quarter of their salaries the third year, with the offer to cover the remainder of these salaries through fundraising.

The Arizona Republic subscriber base has declined over the years. According to their latest Securities and Exchange Commission (SEC) filing, their daily circulation was just over 109,000, with a Sunday circulation of over 320,200. That’s about 1.5 percent and 4 percent of the total Arizona population, respectively, and marks a decline of over 7,000 from 2020. 

In 2019, their circulation numbers fell below 100,000, marking the steepest decline among Gannett papers. 

The SEC filing reflected that the Arizona Republic is Gannett’s fourth-largest major news publication, with the third-largest daily and Sunday circulations. 

USA Today has a daily circulation of nearly 781,200 and a Sunday circulation of nearly 534,600; Detroit Free Press has a daily circulation of over 83,700 and a Sunday circulation of over 896,600; and the Columbus Dispatch has a daily circulation of nearly 137,800 and a Sunday circulation of over 134,700.  

Comparatively, the New York Times reported a $76 million profit for their second quarter despite being a smaller company than Gannett. 

Gannett’s report inspired new criticisms from its journalists and their unions across the country. The Media Guild of the West indicated that Gannett’s recent decline occurred because the conglomerate was more concerned with corporate lobbying than sustaining newsrooms. 

The guild cited Gannett’s network-wide advertising and editorial campaign in support of the Journalism Competition and Protection Act (JCPA) to remove antitrust restrictions preventing Gannett from being paid for content to appear on the platform feeds of social media giants like Google and Facebook.

The guild noted that Gannett authorized its CEO to buy more company stock rather than invest in retaining journalists.

Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.

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