The clearcutters at Digital Worst – sorry, First – Media are at it again, engineering a Memorial Day Massacre at Fargo Street, according to Greg Ryan’s report in the Boston Business Journal (tip o’ the pixel to @EBMason).
Digital First lays off Boston Herald managers, workers
Digital First Media, the new owner of the Boston Herald, laid off at least six employees on the commercial side of the newspaper on Friday, according to a union representative.
A marketing manager and automotive sales manager were among those who lost their jobs, as were a receptionist and three employees in the paper’s financial services department, which handles billing and other tasks, said Donna Marks, a Herald employee who took over as president of the Newspaper Guild of Greater Boston earlier this week.
The cuts come in the midst of a steady exodus of Herald staffers who had survived Digital First’s original bloodbath right after it purchased the shaky local tabloid. (See our Hexit Watch™ for a partial list.)
Sad as it may be, what’s happening at the Herald is very much newspaper business as usual according to this piece by Bloomberg’s Gerry Smith.
Several hedge funds have become newspaper barons in recent years. Alden Global now owns about 60 daily newspapers through a subsidiary, Digital First Media. New Media Investment Group, which is managed and controlled by private-equity firm Fortress, owns almost 150 newspapers in smaller towns like Columbus, Ohio, and Providence, Rhode Island, through a unit, GateHouse Media. And hedge fund Chatham Asset Management LLC is one of the largest shareholders and bondholders in McClatchy Co., publisher of the Charlotte Observer and Miami Herald.
Smith adds, “’They’re not reinvesting in the business,’ Ken Doctor, a longtime newspaper analyst and president of the website Newsonomics, said about Alden Global. ‘It’s dying and they are going to make every dollar they can on the way down.’”
Two certainties at the Boston Herald: 1) They’ve got company at over 200 other U.S. newspapers, and 2) They all face the same future of death by a thousand paper cuts.