Media General President and CEO Marshall Morton tells staffers the reductions, announced Tuesday, are because “the resources that were necessary to support our larger organization are not justifiable in our smaller, more focused company.”
When we sold our newspapers last month, we changed from a company with revenues of $616 million in 2011 and approximately 4,000 employees to one that will have revenues this year of about $350 million and about 1,400 employees working at our television stations.
Media General sold all but one of its newspapers to Warren Buffett’s Berkshire Hathaway in May. As part of the deal, Buffett loaned the company $400 million to restructure its crushing debt.
The layoffs, Morton wrote in his memo to staff, are coming in “corporate staff departments and in the digital media section of the Growth and Performance group.” Most employees will be terminated as of today.
Previously: Media General reports income increase, net loss in second quarter | Media General execs realized in 2011 that newspaper decline wasn’t cyclical | Investment adviser: Media General’s leadership ‘still the worst management team around’
Disclosure: The Poynter-owned Tampa Bay Times competes with Media General’s Tampa Tribune.