Showing posts with label outsourcing. Show all posts
Showing posts with label outsourcing. Show all posts

Tuesday, January 5, 2010

Another tough year for newspapers

Erica Smith, the unofficial keeper of vital statistics for the Fourth Estate in this country, has published some eye-opening 2009 data at her Paper Cuts blog:
  • 14,875+ jobs were lost through layoff and buyout at U.S. newspapers last year;
  • 143 papers stopped publishing print editions in 2009, although 13 stilll remain available online;
  • 34 newspapers tallied layoffs of 100 or more workers last year;
  • 40.7 newspaper folks, on average, lost their jobs each day last year.
The good news? The carnage wasn't as bad as Smith had expected. "The year started off with a lot of layoff announcements — so many that I was sure the 2009 total would easily top the 2008 layoff total ...," she says. But the final quarter of the year didn't see the same "onslaught" that 2008 did, which had pushed that year's total to 15,984.

(To put some of the numbers in perspective, using figures from the Pew Project for Excellence in Journalism, the workforce in American newsrooms ended 2008 at 46,700; the country had some 1,422 daily newspapers in 2007. Smith's numbers, though, also include weeklies.)

But, of course, there's bad news, too: Smith's layoff/buyout tracker already stands at 321+ just five days into 2010. (She says that's mostly due to her not counting a layoff or buyout until it takes effect.) Others also see some clouds on the horizon for the new year.

Rick Edmonds, a veteran print journalist who now follows the industry for The Poynter Institute at The Biz Blog, told Forbes.com in November that he expects layoffs to continue this year. "The math is that when you cut a bunch of reporters from your newsroom in June, that continues to show up as a savings in January," he said. "But if advertising revenues continue to fall, you will have to cut again. My prediction is that in the coming six to nine months, ad revenues will continue to fall and newspapers will be forced to cut yet again."

Alan Mutter, a former newspaperman who blogs at Reflections of a Newsosaur, also worries about newspaper ad revenue going forward, despite some publisher optimism and the recovery seen in stock prices last year. He's concerned papers may begin to outsource whole departments to keep their books in balance.

So we'd best buckle up for another bumpy ride this year.

Monday, December 14, 2009

Local knows best

I have a bone to pick with Thomas Friedman.

The New York Times columnist Sunday talked about a childhood friend, pummeled by the Great Recession, who has learned to become more innovative through what Friedman calls the Great Inflection: relatively cheap, abundantly available services delivered via the Web.

His friend, who owns a marketing agency, had to "radically downsize" because of the deep recession that began in December 2007, but found he could still take on projects -- and deliver them more economically -- by outsourcing many of the steps to a finished product.

He has learned to be innovative, Friedman wrote, and if only banks would lend again, the marketing agency -- and many other companies -- would take off, reinvigorating the economy. That was the column's purpose: to plead for loosening the vice grip on credit. The Great Recession and Great Inflection have made companies "ultralean" and more productive. "But we're like a superfit track star with a weak heart," Friedman says. "We've got to get credit pumping in our industrial muscles again."

Yet to be innovative, Friedman's friend passed over local voice talent for a film the agency was doing for a nonprofit and went online to find stock photo images it could use. Doing the former, the friend indicated, cost the agency just 10 percent of the $250 to $500 an hour the local voices would have charged. The latter cost a few bucks, vs. $100 to $2,000 per image in normal royalties.

And there's my beef.

Remember the "Think Global, Act Local" sentiment? Nowadays, it seems local be damned.

The Toronto Star decided last month that it needed to move copy-editing and page-layout duties outside the company -- affecting nearly 80 workers -- to save money. On Friday, Alan Mutter, a former newspaperman turned Silicon Valley CEO, warned in his Reflections of a Newsosaur blog, that others likely will take up that mantle:

"The jobs of news editors, photo editors, copy editors and page designers may face wholesale elimination at some newspapers in the new year as publishers seek to cut costs by outsourcing editorial production to cheaper vendors," he wrote.

Criminy!

Mutter says outside vendors promise papers savings of up to 55 percent to take over production: editing stories, writing headlines, cropping pictures, laying out pages. But if they're not ready to take that step, owners might look to have just one dedicated desk handle production across several papers in their chain, Mutter says -- which still will cost the jobs of workers involved in production at each paper.

Yes, savings are realized, but at what cost? Jobs are lost, of course, but oftentimes credibility takes a hit, too. Just ask any editor on the other end of a reader tongue-lashing for not putting an event in the proper, known-to-all-locals neighborhood. You might as well mix up Manhattan and Queens.

Let's be locovores of more than just our food.

Monday, November 9, 2009

Humor in the face of outsourcing

Journalists are among the funniest people I've ever met.

They're razor sharp, have a dry wit, and can mimic with perfection the mannerisms and speech of many of the newsmakers they cover.

So I had to laugh out loud at the drubbing given to Toronto Star Publisher John Cruickshank at the hands of his paper's copy desk -- the same people whose jobs likely will be outsourced by management to save money.

The Star, Canada's largest-circulation daily, announced plans last week to restructure through buyouts and other actions, including outsourcing and layoffs. The outsourcing -- moving copy editing and page-layout duties outside the company -- could affect 100 newsroom jobs, according to the union representing the workers.

So in a bit of tit for tat, one (or several) of the creative folks on the copy desk took a red pen to the publisher's memo to staff. To the uninitiated -- and those of the digital-only age -- that means marking up the text for style errors, jargon and a missed opportunity on leading with the news. Gawker got hold of a copy of the red-penned text.

(Full disclosure: I remember when editing was done with what was called a red grease pencil (shown above), which subsequently became a red fine-point marker. I received a framed, red-penned "story" as a going-away gift from a reporter when I left one editing job for another at a cross-town rival. I guess the reporter didn't think so highly of my thoughtful tweaking of her work. I laughed then, too.)

The Star incident was full of the gallows humor that newsrooms are noted for. But, unfortunately, it masked a more serious issue: the continued pummeling of print journalists as newspaper companies scramble to make money. The Star is no different than its U.S. counterparts in reporting ongoing losses for its print holdings in the third quarter.

And it's not alone in trying to find new staffing patterns: The Nieman Journalism Lab today published the text of an address last week to the New York Times newsroom by Executive Editor Bill Keller in which he touched on several money-saving ideas, including the need to find new efficiency in staffing the copy and layout desks.

The one bright spot, though, was his statement on endless belt-tightening: "The idea that you can do 'more with less' is, in my view, one of the four great lies. ... What you can do with less, is less."