The Philadelphia Inquirer is seeking to reduce its workforce by about 10% through another round of buyouts, according to The Philadelphia Business Journal citing union leadership.
In a note sent to members of the News Guild of Greater Philadelphia last week, union president and Inquirer reporter Diane Mastrull said management's goal is to have 40 employees accept the newspaper's latest buyout offer. Unlike past buyouts, if that goal is not reached, Mastrull said there are no layoffs threatened.
Guild Executive Director Bill Ross said Thursday that the Inquirer now has about 400 employees, including 300 members of the Guild who work in editorial, advertising, circulation and finance roles. The buyout is available to both union and non-union employees. He said employees have until May 31 to decide and can depart as early as June 11 but could stay until the end of the year.
Ross said the buyout package offered includes two weeks of pay for each year of service – up to a maximum of 46 weeks – and nine months of COBRA health care coverage.
Even though no layoffs are in the offing this year, Mastrull had a warning to Guild members in her note.
“Those who don’t take the buyout, especially in the newsroom, could find themselves possibly reassigned to other jobs,” Mastrull said. “So, if you are on the fence and a reassignment would cause you to not want to continue to work here, it’s important you have conversations with your supervisors NOW. Don’t let the May 31 deadline for applying for the buyout pass and THEN learn that you’re vulnerable to being reassigned to something you hate.”
The latest buyout offer is not a surprise to employees. When the Inquirer was awarded a $10 million loan — the maximum allowed — through the Paycheck Protection Program, CEO Lisa Hughes told employees the funds would enable the company to avoid layoffs in 2021 but that it may opt to offer buyout packages. She said the company decided to apply for PPP due to the continued impact of Covid-19 on its revenue.
In addition to the $10 million from PPP, the Inquirer saved money by laying off 528 employees after closing its 674,000-square-foot plant on River Road in Upper Merion Township on Dec. 31 and moving printing of the Inquirer and Philadelphia Daily News to Gannett’s unionized plant in Cherry Hill. It agreed to sell the plant earlier this year to MLP Ventures, a Radnor real estate company run by J. Brian O’Neill.
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