Gannett Posts 3Q Loss Amid Cost-Cutting, Layoffs

Gannett, the owner of USA TODAY and local news operations in 45 states, posted a third-quarter loss but said cost-cutting measures are improving its finances, a trend it expects to continue into 2023.

The media company reported a net loss of $54.1 million in the three months ending Sept. 30, compared with net income of $14.7 million in the same period a year earlier. The company expects a total net loss of $60 million to $70 million this year, an outlook it had forecast previously.

Gannett “continues to respond decisively to the ongoing macroeconomic volatility and inflationary pressures,” CEO and Chairman Michael Reed said in a release.

The latest results come after a “challenging” second quarter, which was followed by Gannett laying off roughly 400 employees, or 3% of its U.S. workforce, to trim costs.

Reed said the company continues to work toward $200 million to $240 million in annualized cost savings. 

Like many industries, Gannett faces a difficult economic environment that includes soaring inflation, labor shortages and price-sensitive consumers.

Last month, Gannett said it would pause its 401(k) match and most hiring, offer employees a voluntary severance plan and have workers take five days of unpaid leave. Reed also plans to reduce his salary through the end of 2023.