Providence Journal’s Parent Co. Reports Major Loss in Revenues, Massive Layoffs

Providence Journal’s Parent Co. Reports Major Loss in Revenues, Massive Layoffs

The Providence Journal’s parent company — Gannett — reported massive losses in revenue in its quarterly financials.

The company reported in its second-quarter results a loss of $54 million on revenues of $749 million.

The stock for the company has plummeted and the company is implementing major layoffs.

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The stock has plunged from a 52-week high of $7.05 to a Monday close of $2.50 — a 65% loss in value.

According to numerous media sources, including Poynter, the company is laying off 400 or more and the staff cutting has hit the Providence Journal — a newspaper that has been decimated by layoffs, buyouts and forced retirements over the past decade.

In recent weeks, the Providence Journal slashed its community calendar and the business feature - people on the move. GoLocal has filled the void and is now publishing both features.

“Our second quarter results and updated full-year outlook reflect industry-wide headwinds in digital advertising as well as rising costs and pressures on consumers which are impacting our near-term performance. During the quarter, we experienced a rapidly tightening macroeconomic environment caused by rising inflation coupled with distribution labor shortages and price sensitive consumers which has affected our traditional print business,” said Michael Reed, Gannett Chairman and Chief Executive Officer.

The union representing many of the Gannett workers across the country — the NewGuild, reports that Reed earned more than $7.7 million despite’s the company’s poor performance and the average employee make just a little more than $48,000 a year