Reading Radio: Deep Cuts Anticipated At The Reading Eagle

Yesterday, we learned that the potential new owner plans to shutdown WEEU 830 AM upon closing.  Unless a buyer is found. Today, we're learning extensive personnel cuts are anticipated at The Reading Eagle in Reading, PA.

MediaNews, also known as Digital First Media, is acquiring the Reading Eagle Co. as an asset purchase and does not have to retain employees or match their compensation and benefits. Digital First will hire new employees and those not rehired won’t receive severance, according to philly.com.

Even before Digital First Media became the lone qualified bidder last week, Reading Eagle Co. -- it includes WEEU radio, a weekly and an events division, in addition to the Eagle -- warned of the possibility of massive layoffs in a WARN notice filed with the state Department of Labor and Industry.

“They haven’t told us anything,” said an Eagle newsroom staffer who spoke of Digital First Media’s plans. “They are keeping everyone in the dark. People are pissed.” The staffer was not authorized to speak and asked to remain anonymous.

MediaNews was the only qualified bidder for the Reading Eagle, which has lost $2 million through March 31. Other newspapers that MediaNews has acquired out of bankruptcy include the Boston Herald and the Orange County Register in California.

Peter Barbey, the Reading Eagle’s chief executive officer and one of the richest men in America, had subsidized the newspaper with $250,000 a month to keep it operating but threw in the towel in March. His family is worth billions of dollars through clothing manufacturer and marketer VF Corp.

The Eagle was founded by Jesse G. Hawley and William S. Ritter in 1868 and has been owned by Hawley’s descendants since then. In the 1950s, author John Updike worked several summers as a copy boy at the Eagle and also wrote several feature articles.