Saw an article in my local newspaper today about 100 job cuts at the Chicago Tribune. It's a well known fact that newspapers have been losing out to online media in recent years, and here is another related story.
The cuts at the Tribune amount to 3.5% of their workforce. They reported that total revenue was down 5% in January, and "ad revenue was down double digits, a continuation of the trend late last year". Cash flow had dropped more than 8%, in addition to a drop in 2007. From the company: "The near term outlook shows few signs of improvement".
The cuts were necessary due to "the weak economy and significant declines in advertising volume at our newspapers".
We all know where that advertising is going, and the trend will continue. It will be interesting to see what the growth of online advertising will be for 2008, even with a weaker economy in the US. Hopefully the people who lost their jobs will find new employment, maybe even providing content or services to online media.
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