DAVENPORT, IOWA – Lee Enterprises, the company that owns the Mason City Globe Gazette and other tiny local newspapers, revealed that they shed over 11 per cent of their full-time employees in the last quarter.
In its quarterly report, Lee Enterprises disclosed they rid the company of 11.5% of their full-time employees and disclosed “a reduction in staffing levels” that wasn’t elaborated upon. These staff cuts allowed Lee to decrease compensation costs 9.2%.
Meanwhile, the heavily-indebted company ($499.8 million) apparently continued to distance itself from its printed newspapers as circulation dwindles. Lee admitted that newsprint and ink expense decreased 6.8% on a same property basis, due to a reduction in newsprint volume. However, “Price increases and additional revenue from premium content partially offset revenue lost from lower print circulation volumes.”
Digital retail advertising grew 8.6% in the quarter, but advertising and marketing services revenue combined decreased 9.5%.