• by Ray Schultz , October 12, 2022

Gannett employees apparently will take the hit in the latest cost-cutting effort by the country's largest newspaper publisher. 

CEO Mike Reed announced these changes in a staff email:

• 401(k) Match Suspension—Gannett will temporarily suspend the 401(k) match for contributions made on or after October 24, 2022. 
• December Mandatory Leave—Employees must take five days of unpaid leave during the month of December. 
• Voluntary Severance Offer—The firm is offering to pay severance to an employee in exchange for their voluntary resignation and execution of a separation and release agreement.

In addition, the company is offering these voluntary options:

• Adjusted Work Week—Employees may adjust their work schedule with fewer hours, accompanied by a 20% reduction in compensation, while maintaining full-time status. 
• Unpaid Sabbatical—Employees can apply for an unpaid sabbatical from one to six months.

Reed acknowledges, “This is a lot to process. This mix of temporary and permanent actions allows us the near term flexibility we need to drive improvement while preserving our ability to quickly pivot as we see the economy and areas of our business progress.”

Poynter first broke the story on Wednesday. 

The news follows the layoff of 400 staffers and an announcement that the firm will not fill roughly that many open positions.

Last Friday, Gannett's stock price closed at $1.49 per share on Friday, a 76% decrease YoY, according to New Jersey Globe.