Interstate General Media is looking for $28 million in cuts from operations at the Philadelphia Inquirer and the Philadelphia Daily News, Newspaper Guild officials Dan Gross and Bill Ross wrote in an email to members obtained by Victor Fiorillo. That follows an emailed update to all employees from Interstate General Media CEO Bob Hall Wednesday, in which he informed employees that revenue in the first half of 2012 was down $16 million over the same period the year before when the company posted a net loss "in excess of $17,000,000," Hall wrote.
"Our owners are willing to invest in future growth, modifying presses, technology, and marketing campaigns, but they cannot be expected to fund operating losses," Hall wrote. He promised an "extensive research project" will lead to "substantial changes to both our newspapers and Philly.com" and said negotiations on labor contracts will reflect the company's need to "change many practices and cost structures to meet industry standards." (more...)