MILWAUKEE–(BUSINESS WIRE)–Journal Sentinel Inc. announced today that it has begun a voluntary employee separation program to better align the size of its business with the changing dynamics of the newspaper industry. Journal Sentinel Inc. is a Journal Communications’ (NYSE:JRN) company.
Effective immediately, full-time employees of Journal Sentinel Inc. with ten years of service or more as of October 26, 2007 are eligible to apply. The Company anticipates that it will accept the voluntary separations of between 35 – 50 employees, or 3.5% – 5.0% of the Journal Sentinel’s full-time personnel. That number may change depending on the number of employees who apply and the number of applications accepted. The separation date is expected to occur on or about November 15, 2007. The Company added that if insufficient voluntary separations are accepted, Journal Sentinel will consider an involuntary program as well.
The voluntary separation program is expected to include a cash severance component and a healthcare benefit component.
“It is never easy to call for staff cutbacks, but we must continue to align our cost structure with the realities of reduced revenues in the newspaper industry,” said Elizabeth (Betsy) Brenner, president and chief operating officer of Journal Communications’ publishing group. “It is important to note that while not yet finalized, Journal Sentinel expects to be down nearly 60 full-time-equivalents (FTE’s) in our core business at the end of the third quarter. Including the voluntary separation program announced today, we expect a total reduction of approximately 100 FTE’s by year-end.”
Forward-looking Statements
This press release may contain certain forward-looking statements related to our businesses that are based on our current expectations. Forward-looking statements are subject to certain risks, trends and uncertainties, including changes in advertising demand and other economic conditions that could cause actual results to differ materially from the expectations expressed in forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Our written policy on forward-looking statements can be found on page 1 of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission.
About Journal Sentinel
Journal Sentinel Inc. publishes the flagship Milwaukee Journal Sentinel newspaper as well as a range of other print and electronic products, primarily serving southeast Wisconsin people and businesses. Journal Sentinel is committed to producing a newspaper that reflects the ever-changing world and fulfills the needs of readers and advertisers. In addition to the daily and Sunday newspaper, Journal Sentinel produces Web products and services through its Journal Interactive division, including JSOnline.com and PackerInsider.com. The company also offers direct mail and database marketing services, and the addition of a new printing facility in 2003 led to Journal Sentinel’s recent entry to the business of commercial printing.
About Journal Communications
Journal Communications, Inc., headquartered in Milwaukee, Wisconsin, was founded in 1882. We are a diversified media company with operations in publishing, radio and television broadcasting, interactive media and printing services. We publish the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and 44 community newspapers and shoppers in Wisconsin and Florida. We own and operate 35 radio stations and ten television stations in 12 states and operate two television stations under local marketing agreements. Our interactive media assets include more than 75 online enterprises that are associated with our daily and community newspapers, television and radio stations. We also provide a wide range of commercial printing services – including printing of publications, professional journals and documentation material – and operate a direct marketing services business.
