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Friday, January 4, 2008

PD's Sister Paper Losing Money by the Ton

Posted By on Fri, Jan 4, 2008 at 3:40 PM

The regular blood-letting at daily newspapers shows no signs of slowing in 2008. Editor and Publisher reports today that The Star-Ledger, in New Jersey, has informed its employees that it’s lost of millions of dollars in advertising, and must tighten its belt. What’s that mean for Cleveland newspaper readers? Hopefully nothing. But if you visit the Ledger's web site, you might notice that the impossible-to-read design of its Web site looks familiar. That's because the Ledger, which won a Pulitzer in '05, is owned by Newhouse, the same company that owns The Plain Dealer. “As a result of several years of such trends, your newspaper is losing money -- a lot of money. If you’ve attended any of my employee meetings, you've been hearing about this situation in detail for some time," Publisher George Arwady wrote in a letter to employees, excerpted in Editor & Publisher. “Fundamentally, the Star-Ledger cannot continue to operate the way it has. We need to cut our expenses drastically, and we need many new sources of revenue." Fittingly, the letter was included with some employees’ holiday bonuses. – Lisa Rab

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