Brian Lawlor
At the end of a particularly brutal week for Arizona media, word came out today that another Phoenix news outlet will be handing out pink slips, this time in the name of efficiency.
The head of television for the E.W. Scripps Co. told employees nationwide today that the media chain plans to layoff workers from most of its television stations, which includes ABC 15 in Phoenix, in the next three months due to an “unprecedented time of change in how stations deliver news.”
The cuts will come by the end of September with stations laying off most workers in two behind-the-scenes departments — graphics and traffic — so the chain can consolidate those functions into separate national hubs.
The move “means that the majority of the employees who handle these responsibilities today will soon end their tenure with the company,” Scripps television chief Brian Lawlor wrote to employees in a memo obtained today by Heat City. “We realize these necessary changes deeply affect the lives of these valued friends and co-workers, and we remain appreciative of the contributions they have made to this company’s success.”
For KNXV-TV (Channel 15) here in Phoenix, the news is a little better than at Scripps stations elsewhere in the nation. Scripps plans to make the local ABC affiliate one of its hubs for “traffic” — essentially the people who coordinate ads — Lawlor said in the memo. The company’s station in Tampa, Fla. will handle graphics duties for stations nationwide, as well as some traffic duties, too.
Lawlor’s memo said the change comes “after months of analysis” about how Scripps can make its news outlets could run more efficiently.
The language sounds very similar to what Scripps executives revealed to analysts in May. During a phone call to discuss the company’s financial health, Chief Financial Officer Mark Contreras told analysts Scripps was working on a special initiative called Project Simplify.
“The idea is to eliminate the complexity embedded in our business,” Contreras told analysts, according to a transcript of the call prepared by Seeking Alpha. The example he gave was specific to newspapers — he said advertising or subscriptions could be consolidated — but he did not say the study was limited to print.
It’s not clear whether the creation of special national hubs is part of Project Simplify, but the move signals the company’s push this year to slim down in as many ways as possible.
Already this year, ABC 15 in Phoenix has entered into a pact with other local stations to create what it called the Local News Service. Essentially, the three stations would agree to send just one crew among them to cover “routine news events” like baseball games or news conferences. The goal was to allow the stations to all save money by eliminating the role of competition.
Already this year, employees of ABC 15 in Phoenix have been hit with pay cuts, but today’s announcement appears to be the first time they have faced layoffs. It is unclear how many employees will be cut.
Earlier this week, the state’s largest newspaper, the Arizona Republic, announced it had laid off about 100 employees company-wide.
Read Lawlor’s full memo to employees:
Dear Colleague:
As you know, the television industry is experiencing an unprecedented time of change in how stations deliver news. At Scripps, we have made several, significant operational changes this year; and we continue to look for new ways to become more efficient, extend our reach, and better serve our communities. It’s part of our commitment to viewers, advertisers and shareholders.
Most recently, representatives from Scripps television stations worked with our corporate office to evaluate the way we operate our traffic and graphics functions. They researched industry best practices for centralizing and standardizing their respective functions.
After months of analysis, we have decided to create hubs for both traffic and graphics. Technology now allows the majority of these functions to be performed more efficiently through hubbing. By establishing company-owned hubs, we are building an infrastructure that will reduce duplication of work and increase efficiency in a far more cost-effective manner.
The traffic hubs – one at KNXV in Phoenix and one at WFTS in Tampa – will be operational by the end of the third quarter. The graphics hub, also located at WFTS in Tampa, will be fully functional in the fourth quarter. These hubs will serve all of the Scripps stations.
Moving functions from individual stations to the hubs means that the majority of the employees who handle these responsibilities today will soon end their tenure with the company. We realize these necessary changes deeply affect the lives of these valued friends and co-workers, and we remain appreciative of the contributions they have made to this company’s success.
We also know that you and everyone in the TV division have been asked to change the way you work. I truly appreciate your flexibility and willingness to adapt and learn new processes. The product you put on the air every day remains outstanding, and your daily dedication is invaluable.
Later today, your GM will host smaller group meetings to discuss these changes and answer your questions. Please keep in mind that you can always reach out to your HR manager and your supervisor.
Thank you for your ongoing commitment to our viewers, to the station and to each other.
Thanks,
Brian