Tuesday, reports said newspaper publisher Gannett Co. Inc. (GCI) has announced that some workers would be required to take a one-week unpaid furlough in its U.S. local newspaper division during the first quarter, despite some improvement in ad sales.
Reports said the furloughs at Gannett were announced in a memo signed by Bob Dickey, who heads Gannett's U.S. Community Publishing, formerly known as the Newspaper Division. It was first posted on the Poynter Institute's news media blog on Tuesday, reports said.
Dickey's memo reportedly said Gannett has seen "some promising trends in advertising with ad declines slowing throughout the year."
"As we begin the holiday shopping season, we are also seeing some indication that retailers may be spending more on advertising."
Dickey, noting that the first quarter is traditionally the lightest time of the year for the company, said nonunion employees in his division will have to take one unpaid week off during the first quarter of 2010.
"We will be communicating separately with union representatives and asking for their support of the furloughs," he said, adding union-represented employees who recently negotiated pay reductions in their contracts will not be furloughed.
The McLean, Virginia-based Gannett, which published 84 daily newspapers in the United States, eliminated 10% of its jobs in 2008. It also cut 3% or 1,400 positions, last summer in the face of ad declines. During 2009, Gannett required employees to take one-week furloughs in the first and second quarters.
Separately, USA Today, Gannett's largest newspaper, is also reported to have slashed 26 newsroom positions and USA Weekend 11 jobs.
As more people abandoned print newspaper subscriptions for free news online, advertising revenue plunged resulting in job cuts. In October, Gannett reported a 53% decline in third-quarter profit amid a 28% decrease in publishing advertising revenue from a year earlier.
Other U.S. newspapers and magazines have also been shedding workers as well. The New York Times, The Associated Press and Time Inc. have announced job cuts in recent weeks.
GCI rose $0.12 or 1.21% and closed Tuesday's regular trading at $10.01. After hours, GCI rose further $0.05 or 0.49% and traded at $10.06.
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