A discouraging day at the office

After a couple of really positive posts this week, the cold reality of the ailing newspaper business and slumping economy is something I can't ignore.

I think we're all familiar with the big story: Falling circulation and slumping advertising revenues are wreaking havoc all over the country, even as industry experts tell us that more people than ever are reading us, thanks to free online content. Problem is, no one -- except The Wall Street Journal, with its elite readership and specialized business content -- has figured out a way to make money from the Web.

Just this week, the head of the New York Times Co. said The Boston Globe (which the Times Co. owns) “cannot survive” unless Globe editors and reporters accept a 23 percent pay cut. Closer to home, The Register-Guard in Eugene announced the elimination of 35 positions, resulting in the layoff of 21 persons across all departments of the company.

So no one at The Oregonian who attended a meeting yesterday with the publisher and the editor was surprised to hear the latest bad news for us. I'll spare you the details, but these are the headlines: Ad revenues and paid circulation are still sliding beyond projected levels, even after a round of buyouts late last year and a smaller, second round earlier this year. Millions of dollars that used to come our way from the real estate and automotive sectors and and help wanted ads have dried up and blown away.

What does that mean for us? Most likely, additional staff reductions after Labor Day, possible additional furlough days in 2010 and, starting in January, having all employees (instead of just those most recently hired) contribute to the cost of their health insurance. Already this year, we're taking a temporary pay cut and four unpaid furlough days.

I've said it before but it bears repeating: It's discouraging to do the quality of journalism we do -- both in print and online -- only to know these larger economic forces ultimately control our destiny. It's hard to squeeze advertising dollars from a local business community that's suffering through the same recession as everyone else. One can only hope the national economy bounces back sooner than anticipated because we certainly can't cut our way to profitability.