Regional publisher Johnston Press is offering its staff an enhanced voluntary redundancy package in a further bid to reduce costs.
Company results published in March this year revealed that the company reduced staff numbers by 23pc during 2012, with 1,300 jobs disappearing.
The cutbacks achieved savings of £37.6m during the year, helping the company to reduce its net debt from £351m to £319m.
However chief executive Ashley Highfield told staff today that there was a need for further “rescaling” in order to ensure financial targets are met.
The new voluntary redundancy programme, which will offer enhanced terms, will now run for four weeks until 25 October.
It will apply to most areas of the business, with the exception of advertising and digital.
Said Ashley: “We announced a set of healthier results to the city in August which included a return to operating profit growth, strong digital revenues and increases in overall audience
“To ensure we are in a solid position for continued growth we need to be constantly reviewing our business structure and rescaling where appropriate.
“We have already taken many prudent measures to ensure we hit our financial targets and we will continue to explore different options for our employees to consider.
“With that in mind we are today announcing an Enhanced Voluntary Redundancy Programme.”
Johnston Press is also welcoming applications during the four-week period for more flexible working arrangements such as reducing working hour and taking a career break
Staff have been told they will be kept informed through regular updates and briefings at appropriate stages of the process.
A leading National Union of Journalists official today described the redundancy offer as “generous” but criticised the continued reduction in headcount.
Scotland organiser Paul Holleran tweeted: “Johnston Press seek voluntary redundancies across the group with enhanced deal. Generous offer but we need more staff not less.”
The NUJ has also issued a statement raising concerns about the redundancy annoucement.
NUJ deputy general secretary Barry Fitzpatrick said: “Already there are serious issues over workload and the pace at which digital change is being imposed. Revenue migration to digital remains disappointing and seems to be driven by a mistaken belief that it will come right in the end.
“The root cause of this crisis is the scale of the group’s indebtedness and the draconian terms under which the banks including RBS have structured the loans.
“Given the responsibility that the banks have for the loans it is time that the terms were reviewed so that instead of strangling the company the money can be used to restore the trading performance and allow for real growth.”
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…How can they operate on even less staff? Still, good for those who are ready to walk
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Staggering. Those left after the last lot of cuts are struggling to cope with the resultant workloads as it is, let alone now having to deal with more given the inevitable flood of people that will be willing to get the heck out of JP while they can.
That’s if they’re lucky enough to be able to do that. Some can’t take that chance no matter what package may be available to them.
Quite how a company like JP continues to think that getting rid of staff that are desperately needed to make its core products better is acceptable is beyond me.
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This is an exact repeat of what happened last year resulting in a huge loss of staff which journalists are still struggling to cope with now. In newsrooms up and down the country, morale will again suffer because of this short-termism.
JP get to the end of the year, find they are not hitting targets, then take quick measures to get out of the hole.
Staff may be made redundant but the work is still there. No surprise that with fewer staff left, the quality of the product suffers and it is harder to hit targets next time round. Readers know the difference between content produced by experienced, talented journalists and that produced by low-paid trainees and students.
Sadly it is hard to see a future for JP.
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It’s obvious Johnston Press is downsizing and the top managers are securing their own financial futures before everything comes crashing down for the rest of us. I’d like to take redundancy but with the job situation as it is, and being in negative equity on my mortgage, I can’t even consider it. Depressing.
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How about “rescaling” the size and salaries of JP’s less than impressive management – and unenhancing their pay-offs when they leave?
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JP really must be in the deep doo-doo if they’re doing this. Didn’t they ask for people to take VR in the summer? What’s the chances of the entire company making it to Christmas?
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I was surprised they made it to last Christmas.
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interesting that they’ve also recruited an external Managing Editor in Leeds when they are now asking for VR…not that I begrudge her the job, but how does that work?
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On the plus side, JP’s shares have rallied a bit following this announcement. So perhaps not all bad news
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The sad thing is that good, successful newspapers are being wrecked in a desperate attempt to keep JP afloat.
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The really bad news is that JP makes it so very difficult to advertise. Try ringing a centre to place or enquire about advertising. When you do finally get through (if you’re lucky) you are told that the salespeople are all in a meeting.
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@jp advertiser – yep, and that’s if you get through to the centre at all. When I was in editorial I was constantly fielding calls from people who had been transferred all round the country, kept hanging on for call centre in Leeds etc when all they wanted to do was place an ad.Little old ladies ringing to place obits were completely baffled by the system and just gave up. People were on the end of the line with their bank cards in hand ready to give JP money and JP just looked like it didn’t want to know.
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although not open to advertising staff ( wish it was!) it has a direct impact as resources are so stretched, it makes the salespersons job even harder, as the cant produce good enough adverts in a decent turnaround, and advertisers turn away from us!!!!
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Kylie –
Having seen some of the ads from India your comment makes sense, though I presumed ads were so bad because they were turned around so quickly. The reps’ job must be much more challenging now that design instructions have to be so specific and a British designer cannot be left to be creative.
It is infuriating to read what the management at JP have to say about cost savings when they are the ones taking most out and will then leave with massive payouts when their targets (no jobs for many, too much work for the remainder) are met.
I am confused though. One minute some JP staff are to receive £500 pay rises, the next being offered generous VR. What kind of management is that? JP should have started making savings years ago, before having to act in such haste. Think of JP as a tree (for example) and shake it hard! The dead wood or rotten apples would have gone, leaving a smaller tree, but a stronger one. JP would have had people working for them, locally (as they like to make their boast) that were their most talented and hard working staff, still able and keen to produce a good, local product. To say that advertising will not be touched by redundancy is technically not true, as the creative studios are integral to advertising and they were hit last time and will no doubt be so again, with everything going to India.
I note that the package this time gives three weeks pay for each year and the maximum payout has increased greatly, which is generous, but if JP is so hard up and need to make further savings, why is it voluntary redundancy at such a cost? Make redundancies at the same rate as previously. It’s a bad business and people suffer, but why should those losing jobs now benefit more than those that lost them in the past?
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Good grief!
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If you want to go, it’s a great offer. I’d get the equivalent of 1 years 4 months wages. If I was 60 ish, I’d jump at the chance, sadly I have about 30 years to retirement.
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Will JP be around in 30 years?
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JP Advertiser and Ex-Jp – you’re right. I’m a reporter and I get countless advertising calls coming through to my phone, usually from people who are frustrated and have already been passed around the system.
It’s hardly surprising that they decide to give up and not advertise at all.
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Clearly, JP’s ultimate goal is to just have “editors” placing submitted content from PR companies and users into templates. One editorial employee per publication and crowd-sourced content – great savings and more swill for those with snouts in the trough!
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This is pointless, it is still managers discretion. Two people here have told the boss they want VR and he has told them both he will reject their applications.
Pointless!!!
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The cash is ok if you can get other work immediately – not always possible.
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I retired from the Lancaster Guardian some 20 years ago after 32 years service. I was lucky never to be employed by JP. Previous owners at least respected the profession and cared for their employees.
Local papers, like nationals are mostly all struggling but it pains me to see today’s weekly papers have been turned into expensive “parish magazines” full of free content and submitted pictures.
There is little pride left in local journalism with publications resembling free sheets.
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I currently work for JP and find it staggering that, while JP is offering voluntary redundancy and indeed forcing redundancy in the past, they can still employ plenty of sales reps to play party games such as Pin the Tail on the Donkey, Jenga and Snakes and Ladders, and offering prizes such as cash and alcohol as ‘incentives’ to get the staff to actually do the job roles they applied for. I wish I was joking, but I get to witness this happening week in week out.
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