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News & Observer plans cutbacks, offering ‘voluntary transition’

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The News & Observer, citing “great change and challenges,” is offering “voluntary transition” packages in an attempt to reduce its workforce.

In an e-mail distributed to employees on Monday morning, Publisher Orage Quarles said the packages were designed to help the newspaper “operate more efficiently.”

“This leads to a realignment of resources and changes in many of our business practices,” Quarles wrote in an e-mail made available to WRAL.com.

In a story published on its Web site, The N&O said the buyout packages would be offered to 230 of its approximately 900 employees. Workers accepting the offer would be employed through May 23.

The note stressed that the “transitions” would be voluntary and that not all departments would be affected.

A spokesperson for the human resources department of The N&O declined comment, referring calls to Quarles.

In his e-mail, Quarles did not rule out further changes.

“While there are limits on the number of employees who may be offered this package, there is not a minimum ‘target’ that we are required to achieve,” Quarles wrote. “This program does not become involuntary if a certain number of employees do not volunteer. However, this does not preclude the possibility of The News & Observer identifying efficiencies or other business model changes that could impact staffing in the future.”

In The N&O story, Quarles cited rising fuel costs, declining revenues and “other factors” such as rising newsprint costs as reasons for the buyout offer.

The N&O is owned by the California-based McClatchy newspaper chain. Last week, McClatchy reported a quarterly loss of $849,000 for the quarter ending March 30. McClatchy also owns the Charlotte Observer.

The full text of the e-mail follows:

Memo To: All Employees
From: Orage Quarles III
Date: April 28, 2008
Subject: 2008 Voluntary Transition Program

Like many newspapers around the country, we are experiencing great change and challenges. We are facing more competition, our traditional business model is changing in the digital age, and basically our industry is going through a fundamental transition. While we remain committed to our print product, we are focusing more attention on our online and niche products.

In order to support these efforts we must continue to look for ways to operate more efficiently. This leads to a realignment of resources and changes in many of our business practices.

To help achieve this realignment, we have decided to offer a voluntary transition program for work areas, positions or work groups where jobs would not need to be replaced if vacated due to new technology, efficiencies and/or consolidation of job functions.

This program is limited in scope and there will be department limits so that no one area is unfairly impacted by reductions.

While there are limits on the number of employees who may be offered this package, there is not a minimum "target" that we are required to achieve. This program does not become involuntary if a certain number of employees do not volunteer. However, this does not preclude the possibility of The News & Observer identifying efficiencies or other business model changes that could impact staffing in the future.

Eligible employees will receive an information packet about the program from Human Resources this afternoon. Employees who are approved for the program will work through Friday, May 23, unless otherwise notified by Human Resources because of business needs.

We see this as an opportunity for those who may have a desire to pursue other interests, while addressing the newspaper's need to respond to a changing business model. Should you have any questions about the voluntary program, please contact Human Resources ...