To:
All Detroit Newspapers Employees
From: Frank Vega, President of Detroit Newspapers
Date: April 20, 2001
As
you know, the economic climate is affecting our operations
just like it has other newspapers and companies locally and
across the country. We have made a number of expense reductions
and operational changes to offset the effects of the downturn,
which has caused advertising revenue to be significantly below
budget projections.
I know
at times like this, employees have questions about how we
are doing, what our plans are and what's expected of them.
It seems these types of questions have increased in the past
few weeks and I know that rumors have been circulating about
a possible force reduction. So, I want to share what our current
plans are.
Although
we are continuing to explore various cost-cutting measures,
we have concluded that we must downsize our workforce by approximately
100 positions in order to address the Company's economic situation.
We hope to accomplish as much of this downsizing as possible
through voluntary staff reductions. The force reduction will
therefore occur in two stages.
First,
we are in the process of finalizing details on a voluntary
early retirement offer that will be communicated to eligible
non-represented employees in all divisions during the first
week of May. At that time, personalized early retirement packages
will be delivered to employees who meet the criteria of age
55 with 10 or more years of service (as of July 31, 2001).
Second,
in addition to the voluntary early retirement offer, we believe
it will be necessary to implement an involuntary force reduction.
Employees who are affected by the involuntary force reduction
will be provided severance packages. The packages will include
severance payments in accordance with the Severance Pay policy
in the Employee Handbook. We expect to know more about the
force reduction in June and will communicate additional details
about our plans to you then. At that time, volunteers for
the severance package described above may also be accepted.
I wish
we did not have to consider a workforce reduction. But, as
hard as it may be, we must take the necessary steps to reduce
costs, just like many other companies that are experiencing
and reacting to this slowdown.
I want
you to know that I recognize and appreciate your hard work
and commitment. I am counting on your continued efforts as
we move forward.
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