Gannett is cutting $100 million and rethinking subscriptions to curb falling revenue
After a difficult first half of the year, Gannett, the largest newspaper chain in the country, is executing $100 million in cuts and rethinking its subscription strategy, executives announced Thursday.
The company ended its most recent quarter with a profit of $78.4 million, up from the $13.7 million profit it posted during the same period last year. However, total revenue fell 8.6% year-over-year to $584.9 million. To address this issue, Gannett recently began making cuts with the goal of saving $100 million. Those reductions include closing two of the company’s largest print facilities, shifting some of its markets to mail delivery and automating and outsourcing certain parts of its business.
Related Knowledge Center: State of the business model
The traditional journalism business model has long since collapsed, and news organizations have shrunk or disappeared entirely. While a number of promising experiments are under way, the public has not shown a willingness to buy what news organizations are selling.