July 2, 2008
Dear Colleagues:
When we spoke with you last October about a necessary reduction in the size of our Milwaukee Journal
Sentinel work force, no one could have foreseen the downturn in our local economy that has only
deepened since then.
Our advertising customers – especially car dealers, real estate agents, hiring officials, retailers and
mortgage banks – have been battered by a ‘perfect storm’ of deteriorating credit conditions, slowing home
sales, contracting company size and higher gas prices. All of these forces have driven ad spending down.
As a result, Journal Sentinel ad revenues are running more than 12% below last year through May. At
the same time, the costs of running our business are rising, with newsprint and fuel price increases
becoming a concern.
These pressures aren’t unique here. In recent weeks a number of U.S. newspapers – including the 32
McClatchy papers, the Palm Beach Post, the Baltimore Sun, the San Jose Mercury News and the
Hartford Courant – have announced staff reduction programs.
Our challenge continues to be operating our companies as efficiently as possible. We need to perform
financially in a manner that enables us to invest in the future and continue to serve our readers and
advertisers with the quality products they expect. We have successfully begun to change from a
traditional newspaper company to a more integrated multimedia company, and we need to continue to
support our exceptional print publications as well as our developing online options and other commercial
businesses.
That’s why today we are announcing another voluntary separation program for full time employees at
Journal Sentinel. The details of the program will be distributed to you in your departments. Once again,
one program will be for the news and editorial department and a second for all other employees.
All full-time employees are eligible, without a years-of-service requirement. If we are unable to meet the
number of voluntary reductions necessary to align our headcount with a smaller revenue base, we will
move to involuntary terminations.
This is a difficult and painful message, and it’s being delivered at a time when your work has never been
better. We can point to a number of accomplishments this year across the company – and your
dedication to our readers, customers and community has made us all proud.
Because we know you will be actively considering how a program like this will affect you and your family,
we’ve provided a three-week window for you to consider, research and ask questions. Please don’t
hesitate to contact your HR managers with your questions.
Thanks for all you do for Journal Sentinel every day.
Sincerely,