Categories
News News Blog News Feature

Layoffs Hit Memphis Zoo Amid “Budgetary Constraints”

Layoffs at the Memphis Zoo have come amid “budgetary constraints” in decisions “not easy to make.”

An email shared with the Memphis Flyer shows news of layoffs went out to some employees Thursday from the zoo’s human resources director Steven G. Rodriguez. The valediction of the email reads “very respectfully.” An image below that and Rodriguez’s signature shows giraffes munching leaves and “#BESTDAYEVERRR!”

Credit: Memphis Zoo via Facebook

Amanda Moses, public relations and communications manager for the zoo, would not confirm whether or not the email was an example of one sent to employees who were laid off. Instead, Moses sent this statement from the zoo attributed to Memphis Zoo leadership. 

“The recent move was the result of a comprehensive reorganization of our education department,” reads the statement. “We reduced the part-time component of our exhibit guide program and reorganized our animal interpretive team to be more effective and efficient as we focus on guest experience while being fiscally responsible. 

“Our organization remains deeply committed to our mission of conservation, education, and animal welfare. We believe that the changes enable us to continue delivering outstanding experiences to our visitors while ensuring the long-term sustainability of our institution.”

Moses would not say how many were laid off, nor would she answer any questions around “budgetary constraints.” When asked for these details, Moses said only, ”Memphis Zoo stands by the previous statement.” When asked to provide the zoo’s recent (last three years) nonprofit tax information, Moses said, ”I cannot facilitate this request, the information you’re requesting is public record and can be found via an internet search.” 

The email to employees, allegedly from Rodriguez, sheds only a little more light on the situation. 

“The Memphis Zoo has been facing many challenges in the last few years that have forced us to closely examine how we model our business,” reads the email shared with the Flyer. “Budgetary constraints and other business considerations require that the Memphis Zoo eliminate certain positions within our current team. 

“Unfortunately, your position is one of the positions selected for elimination. This decision was not easy to make and we realize the impact it can have on you and your fellow team members.”

The zoo’s finances have been erratic from 2017 to 2021, according to tax documents. Three of those years ended with losses, including a $5 million loss in 2021. Gains were made in 2018, of a modest $374,235 and again in 2020, in which the zoo cleared about $10.5 million. 

Employee counts have risen from 361 in 2018 to 593 in 2021. 

As expected, the zoo’s salaries have expanded in those years from $8.3 million in 2017 to $13.5 million in 2021.  

During these times, C-suite employees made the most money. CEO Chuck Brady made $275,846 in a total compensation package in 2018. CEO James Dean made $204,396 in total compensation in 2019. In 2020, Dean made $323,543 and zoo CFO Mary Ann Biel made $92,866 in total compensation. 

The government mandates that only salaries of nonprofit employees paid above a certain threshold be reported on tax documents. In 2021, the zoo reported five. Dean made $323,543 as president and CEO; Matt Thompson, also listed as president and CEO, made $179,427; Chief Development Officer Michelle Correia made $117,843; Biel made $128,835 as CFO; and Chief Marketing Officer Nicholas Harmeier made $108,669.   

As for those employees recently laid off, they will be given “top priority” to interview for other positions now open at the zoo. If they choose to apply for another job later, the zoo will make them “eligible for re-hire.”

”The Memphis Zoo does not take this decision lightly and will work with those affected to alleviate the adverse impact that this may have on you,” reads the email from Rodriguez.

Those laid off were also instructed to return their uniforms, keys, and other zoo property.  

Categories
Fly On The Wall Blog Opinion

Gannett Layoffs Hit Commercial Appeal Newsroom

In December of last year, Fly on the Wall predicted layoffs would be forthcoming at Gannett sometime after the new year. It had seemed like an inevitability since November’s dismal quarterly report and the call for early buyouts that always presages another round of cuts. 

Yesterday, it finally happened. On Wednesday, January 23rd, Gannett laid off newsroom employees at newspapers across the country.

Via Poynter:

Another brutal day for journalism.

Gannett began slashing jobs all across the country Wednesday in a cost-cutting move that was anticipated even before the recent news that a hedge-fund company was planning to buy the chain.

The cuts were not minor.

The CA, which lost many top-of-pay scale employees to the Daily Memphian startup and has been under a hiring freeze, appears to have fared better than many Gannett publications.

As of now only one newsroom layoff has been confirmed. Four open positions have been eliminated. This story will be updated as more is known.

  

Categories
Fly On The Wall Blog Opinion

Will The Commercial Appeal Face More Newsroom Layoffs?

Gannett: Newspapers lack resources to spellcheck their own names. Will likely cut more of these resources.

Will The Commercial Appeal face more newsroom layoffs? Probably. Can the diminished daily newspaper withstand more cuts? It’s hard to say. But before getting into any of that, I’d like to share a few of the things Maribel Wadsworth, president of USA Today Network, allegedly told Gannett employees during a company-wide conference call according to a report by The Nashville Scene. I’d then like to provide an easy to understand translation for folks who don’t work in the print media and therefore won’t be hip to the industry’s famously colorful jargon.

• “As we continue this transition … it’s important to understand … that it will require us to think about our overall cost structure in alignment with profitability.”

Translated: layoffs are coming.

• “Going forward, we will be a smaller company.”

Translated: Layoffs are coming.

• “It’s gonna feel rocky at times. It just is. We just have to be very clear-eyed about that.”

Translated: Layoffs are coming.

Tennessean staffers were also told:

• “There is no plan for a mass layoff before Christmas.”

Translation: HAPPY NEW YEAR, SUCKERS!

None of this is surprising. Gannett’s Q3 numbers weren’t good. Digital growth isn’t making up for losses in print and the company is looking to cut operating costs. In previous years, when the CA was a Scripps property, layoffs inevitably followed any efforts to recruit early retirees. It seems as though the trend will continue under Gannett. In November, a company-wide buyout offer targeted employees over 55 with more than 15-years experience. The deadline to take Gannett’s offer of 30-35-weeks pay, and a possible bonus of up to $5,520 is December 10th. 

Categories
News News Blog

UPDATE: Commercial Appeal Changes, 17 Laid Off

A memo circulated to Commercial Appeal employees Sunday, Sept 21 announced that the newspaper would undergo major physical restructuring. Today 17 layoffs were announced including 13 employees covered by the Memphis Newspaper Guild.

The breakdown of layoffs according to a Guild memo:

Seven [layoffs] in editorial. (Two photographers, four reporters, one copy editor)
Four in customer service.
Two in transportation. 

The changes being instituted to save money on newspaper production costs include the publication of only one daily edition, 
moving daily business reporting to the paper’s A section, and creating a Sunday-only standalone business edition. Daily editorial copy will be reduced to a single page between Mondays and Saturdays. The CA will discontinue its DeSoto, Mississippi, edition, which had previously been identified as a successful suburban edition during a period when the CA, which once reached deep into surrounding counties, was heavily courting suburban readers and advertising. Also, the M section will only appear 3 days a week. 

In 2010, following a protracted seven-year contract negotiation, and the loss of many jobs, the AFL-CIO-affiliated union accepted the CA‘s final contract offer, choosing to preserve an “evergreen clause,” that maintains the terms of an existing contract until it’s replaced by a new contract,  but eliminating language that protected employees against layoffs made to facilitate department outsourcing. There have been major shakeups in management, and additional layoffs over the past four years, although the bad news for employees seemed to slow  considerably. After several new editorial hires, including photographers, it even began to look like things might be turning around. The recent round of layoffs was announced following on the heels of the announcement that E.W. Scripps Co., the parent company of the Commercial Appeal would abandon its entire newspaper division in order to focus on the development of television and radio properties. The announcement comes just before   the Newspaper Guild and CA management to reconvene for further contract negotiations.

Affected Guild-covered employees include longtime editor and reporter Lela Garlington, Marlin Morgan, Karen Focht, Bryan Brasher, William DeShazer, and Jeff MacAdory.

The Commercial Appeal will become part of  the Milwaukee-based Journal Media Group.

In its own reporting on the situation the newspaper quoted CA publisher George Cogswell saying the changes were being made in response to soft revenues. 

The format changes will begin this week. 

The following email was circulated by Wayne Risher, President of the Memphis Newspaper Guild. 

Job Cuts Announced
September 23, 2014
From the Memphis Newspaper Guild
Once again we’re in the sad position of announcing job cuts. Management told us this morning (Tuesday) that a total of 13 people are losing jobs within our bargaining unit at The Commercial Appeal. Here’s the breakdown.
Seven in editorial. (Two photographers, four reporters, one copy editor)
Four in customer service.
Two in transportation.
In addition to those 13, four people outside the Guild bargaining unit lost jobs. That usually means managers, but we’re not sure.
The company began telling the people affected this morning. We sent representatives to most of those meetings and we’ve requested additional information to ensure that those who lost jobs are treated according to our contract.
CA attorney Warren Funk and HR manager Eunice Johnson said this action had to do with longstanding financial issues. “It’s just the way the business is going. It hasn’t been good. Hasn’t been good for a while,” Funk said.
They said it didn’t have to do with the upcoming deal with Journal Media Group. We asked if the officials with the new company were consulted about this action. They said they didn’t know. We asked them to find out.
That’s what we have right now.
We’ll plan to have at least one meeting to help those who lost jobs connect to resources and employment leads – look for an announcement in the next few days. And please start looking for job leads – we’ll organize a way to get those to people who need them.
Wayne Risher
President

Mediaverse-Memphis, a blog following print, digital, and broadcast media in Memphis, obtained and published a memo from CA Editor-in-chief Louis Graham. 

Everyone:

There are major changes coming this week in booking of the print edition and, consequently, in staffing.

The print product is being reorganized to reduce space and save on newsprint and production costs. You’ve heard some of these changes, others will be new. Beginning with Thursday’s edition:
—We will publish a single edition. DeSoto Appeal is discontinued. So is B section zoning for the Shelby suburbs.
—The full Business report moves inside Section A. We will continue to have a standalone section on Sundays.
—We will publish a single Editorial page, also inside A, Monday-Saturday.
—M will publish on Mondays, Tuesdays (Food) and Sundays only. On the other days, comics will front the Classified section and include puzzles and the TV grid.
—Sports moves to Section C.

As a result of these changes:
— Peggy McKenzie will head a newly created Suburban department responsible for the coverage of the burbs, including DeSoto.
—Responsibility for the three M sections a week shifts to Chris Herrington.
—All line editors have or will be relocated to the center of the newsroom to work on a new multi-department desk co-op coordinated by John Stamm. More explanation to come.
—Kim Coleman will supervise copy and design.

Categories
Opinion Viewpoint

Paper Cuts

On Wednesday, March 21st, Joseph Pepe, president and publisher of The Commercial Appeal, issued a memo filled with good news and bad. He acknowledged the paper’s implementation of “many cost-saving measures” and noted the creation of nine new advertising zones. Then he dropped the bomb. “These steps have not been enough to stabilize our profitability,” Pepe wrote, announcing yet another round of employee buy-outs to reduce the Memphis Publishing Company’s payroll costs.

By week’s end, employees of three more Scripps newspapers received similar notes from their publishers. In each case, management cited declining ad revenues and stressed that “attractive” buy-out packages, with severance pay and short-term insurance plans, are a realistic, humane alternative to layoffs.

At a glance, this looks like an evenhanded act of corporate benevolence in the face of irreversibly dire circumstances. But that’s not exactly the case.

If daily newspapers are dying, it isn’t because they’re not profitable. It’s because the 15 to 20 percent profit margins that would make most CEOs giddy just aren’t enough for modern media conglomerates. And instead of making a full-frontal assault on the real problem — dwindling circulation — newspapers across the country continue to reduce the size of their products, cut staff, and lean more heavily on wire copy and reader-supplied content. Scripps has followed in the footsteps of newspaper giant Gannett, which, as newspaper scholar Aurora Wallace aptly cited, “champions the local in the abstract as it commits fewer and fewer resources to its service.”

Scripps execs pulled a head-fake in January by suggesting that the company might sell or otherwise separate itself from the “sagging” newspaper division. Then, almost immediately, they said they wouldn’t. The reversal was duly noted by Ad Age magazine in a January 22nd column explaining how Scripps — “a mid-tier media company from Cincinnati” — became a Wall Street favorite with stock prices at a 52-week high and poised to climb. Scripps has the 16th-largest online audience in the country. It’s bigger than Comcast, Viacom, G.E., and CBS. Scripps also made an expensive but wise decision to own all content created for the company’s ever-more-profitable cable holdings.

Buy-outs at the CA and other Scripps papers come on the heels of news that the projected decline in first-quarter revenue, a figure originally pegged at 5 to 7 percent, might be closer to 6 to 8 percent. The numbers don’t inspire confidence, but previous efforts to staunch the bleeding by cutting staff and gutting their newspapers have done little to attract more readers and more revenue. Does anybody really think that this time things will be different?

Newspapers across the country are struggling to maintain their big bottom lines, but Scripps is in a unique position to reinvest and rebuild its print division. Its diverse holdings and healthy outlook should create an environment conducive to enlarging newsrooms, stepping up local coverage, and broadening product visibility. But instead of reinvesting in the communities it hopes to profit from, Scripps is once again applying leeches. Consider this: The CA has reduced staff in six of the past seven years. If you think that doesn’t affect the quality of local news coverage, I’ve got a bridge in Brooklyn to sell you.

In 2006, advertisers spent $46.6 billion on daily-newspaper advertising nationwide, down 1.6 percent from 2005. Circulation took its largest plunge in 15 years. Nevertheless, newspapers remain profitable, and since they often set the editorial agenda for local radio, television, and Internet news sites, they are arguably more important and influential than ever. Scripps has taken risks in the development of its cable and Internet properties. The company has the resources to be similarly courageous with its newspapers, but instead they are in death mode.

“You’re either dying or growing,” Pepe told the Flyer in 2006. “You’ve got to pick one.” Based on the uncannily similar language in the memos distributed to Scripps employees last week, it would appear that the CA‘s parent company has made its decision.

Chris Davis is a Flyer staff writer.