True North

The Star Tribune raised its level to "DeathCon 2":

The Star Tribune this morning announced the layoff of 58 employees, about 3 percent of the newspaper’s workforce, and an indefinite wage freeze for all its nonunion employees, about 600 in total.

Publisher Chris Harte cited continuing revenue declines, the efficiencies of new technology and outsourcing in a morning memo to employees.

I did a bit of searching and came across this memo from Chris Harte, Publisher & Chairman:

A few numbers tell the story well, I think. Total revenue (print and internet advertising and circulation) is down almost $75 million in the last two years. Classified revenue has been the hardest hit part of our business, and our 2007 classified revenue was down over 50 percent from what it was at the start of the decade.

...

The fundamental change we are facing is not temporary. Yes, we will try to, and should, regain a portion of our lost revenue when the economy improves. But we don't know how much, and we don't know when that will be. What we do know for sure is that the competitive world has changed permanently and we will fail if we don't change much more than we have already. In today's jargon, we are going to have to reinvent our business.

And this is a matter more of attitude than of resources. Our intellectual capital is huge, and we need to draw upon it to find new ways of operating. I am absolutely confident we can do that.

...

I believe our future is bright, and I invested a substantial amount of my own money in the Star Tribune on that belief. I believe passionately in what we do, and I know a huge number of you do, too.

That was dated January 22, 2008. Looks like intellectual capital and Harte's own money isn't getting much ROI.

Cross-posted at Freedom Dogs.

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