NAA Cuts Staff by Half

layoffs Mirroring the shrinkage of the industry it serves, the Newspaper Association of America said it is cutting roughly half of its staff -- a move that will affect 39 out of 82 employees. In a development full of irony for the beleaguered print medium, the NAA is also halting print publication of its magazine, Presstime.

NAA President and CEO John Sturm announced the cuts in a memo to employees. Sturm cited the steep, ongoing decline in newspaper ad revenues, which have gutted the businesses of many NAA members. Presstime will survive in digital form, although it's unclear whether this means a Web site, email newsletter, or some other variation of online publishing. The NAA is also planning to reduce membership dues again in the near future.

Newspapers have been hit by a double whammy, as a long-term secular decline in print media consumption coincides with one of the worst general economic downturns in recent history. This has resulted in unprecedented declines in all the major newspaper ad categories, which began several years ago but are now accelerating.

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According to the NAA's own figures, in the fourth quarter of 2008 total print ad revenues fell 20.6% to about $9.3 billion, making it their worst fourth quarter since 1993.

The NAA isn't alone, as other media industry organizations have also been laying off employees and cutting back on events. In February, the Magazine Publishers of America canceled the American Magazine Conference. Around the same time, the Outdoor Advertising Association of America also canceled its annual trade show, citing the recession.

To cut costs, the MPA is hosting a substitute conference closer to home in New York, where executives will be able to attend without running up travel expenses.

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