All of us gathered here want to know what this is all about. Even I can not describe the feeling I have while I was looking at my schedule and finding out that today, I will be giving out the decision I, for so long have pondered upon. Today, the newspaper industry had felt the one of its worst situations at all times. The US economy gravely suffered after the 9/11 attacks. We become to think and expect the worst after the event. We are at lost. Deeply affected by the tragedy, deeply in sorrow for the ones who were left behind, and afraid or terrified for what can and will happen next.
This is fact. We all need to survive and think of ways on how to react and adapt to the situation. We will never be able to get a hold of ourselves just with the thought about the worst thing that can possibly happen in the future months and years. We must be decisive, strong, and assured of our responsibilities and the decisions we have to make for the benefit of the most; which is one of the ideals in a free and democratic country. Let me be honest and direct to what I want to say to all my gathered staff here today.
Due to the several factors seen by the company as a hindrance to the productivity of the agency, we must be effective as a work force. It is apparent that the country is experiencing the worst time in the nation’s history of crisis. I would like to share Edwin Gordon’s view regarding the economic crisis we are now living. As a corporate executive and a known author who discusses economic issues, he says that America can not bear the crisis even after five years.. (http://www. boston. com/business/articles/2005/12/04/labor_crisis_will_put_us_economy_to_the_test?
mode=PF)(Cecil Johnson 2005) The first point taken should be considered as statistics have shown that indeed, we will not be able to bear the crisis. We have heard all the news regarding companies shutting down, job losses and different kinds of industry weakening. I can see irreconcilable forceful factors for this. The indiscriminate unemployment with businesses’ failure to find the best workers they need to be able to be competitive against the different competitions out there in the global economy.
In Gordon’s’ article, he mentioned that America’s work force is divided into three parts. The “smart people” who have educational attainment and are skilled is the 25 percent, another 25 percent are those who are “walking dead” or people who need to acquire new set of knowledge or skills because of technological change, and 50 percent who makes up for the “techno-peasants” or those who have if not few, none of the required skills needed in a job. This is another fact to be considered. The American workers are made up of such numbers and this is evident.
You can probably say that the newspaper industry is a mixture of the percentages mentioned. The work force, as what we all know is the prime movers of all things to happen in this world. Without them, work can not be simply done. Not to which we all owe every products we purchase or every services we render in their trustful hands. This has given the American workers the recognition, prestige and acknowledgement for the things they sacrifice so that most people can live like they are supposed to live. The industry will be cutting jobs.
There are no other ways to say that we, as a company are also affected by the crisis and must be therefore find ways to cope strategize and plan more effective measures to be able to survive the tough grueling economic situations we are all in today. As the CEO of this agency, my heartfelt and sincere apologies to the people who will be affected by this. Not to mention their husbands, or wife, or children who greatly rely on their work for their everyday living means. Why are we about to do this? Some of us might have read this in the news or saw this event coming in the near future.
It is now. It is not without knowledge that the newspaper industry has been facing its biggest problems this year. Analyst had already predicted this event in the industry and there is no holding back. It is already happening. The industry has to make up for the slow advertising growth in which for several years already, has shown sign of fearful aggregation. We know the importance of our advertisers. Three-quarters of our revenues rely on them and a slow advertising growth simply means no money for us.
The investors are in doubt of our capacities to excel in this problem as we hold nothing to the advertising industry. They too are experiencing the crisis. Our investors, which to some extent govern our operations, are putting pressure for us to operate with considerable profit amidst the different problems and circumstances that the industry can not be able to hold on to. Not to mention the increase development in technology brought much of the birth of the internet. More advertisers are looking upon the potentialities in the internet industry compared to the newspaper.
They believe that our industry has been steadily declining since the year 1988. And that is one major problem we as a company can not suffice. Many in our population has also preferring the broadcast media over the print media for information and other things. The cable television and internet industries are at their peaks today as people, more from the young adults’ bracket are very much in their patronage. http://www. infowars. com/articles/media/why_so_many_newspapers_cutting_jobs. htm)(SUTEL 2005) Let me first be very clear about this.
The newspaper industry is still very much strong even since before. Though circulation has been down for the past years, the industry is still very lucrative. The reason to maximize the affectivity of our work force is the big factor why in the first place, we all are gathered here. We consider the paper and the people both main costs in this industry. They are two of the most important things we consider in our decision-making processes and executive decisions. The two things are very much considered in everything.
This year, we see that newsprint expenses increased about 10-15 percent, while other beneficial aspects in our employees are continuously rising as well. We simply can not put up with the fact that even if our revenues are faltering, our costs and expenses are continuously going up at the same time. We can not find the balance we need. It is not about considering the industry as an unworthy or unprofitable industry already. It still has a lot of potential to get back at its feet and experience the glorious days full and profitable circulation. In front with this challenges, we are continuously putting up under the pressure.
Other newspaper companies are also experiencing this havoc. We have seen the effective disbursement of funds as one of the best ways to ease this problem. With that, the work force too has to be effective as well. And we too are also reaching out to other industries, expanding our efforts to incorporate our business with theirs. We have our own tap in the internet sector. But threaths from the different internet big names that are providing customers with their dose of information and news is a hindrance to our goals to tap in the internet market.
There is a 30-35 growth rate seen in the online businesses. But the newspaper industry still considers it as very small to trust solely on that side of the business. http://www. infowars. com/articles/media/why_so_many_newspapers_cutting_jobs. htm)(SUTEL 2005) There have also been reports of our stock value falling in the market. It is true. Due to this, many investors are discouraged to put faith in us. Investors look forward in the future, not how profitable the industry is today. (http://www. infowars. com/articles/media/why_so_many_newspapers_cutting_jobs.
htm)(SUTEL 2005) We must be able to see the implications of the reasons I have given you why we, I as the CEO, need to do this. The past years have been difficult, and the future will soon be too if we do not take actions. The industry will greatly benefit from the decisions made today to be able to cope up with the challenges. And effective work force is necessary. We must enhance the potentialities of the American workers by challenging them not just with their intellectual capacities, but also with their skills, whether it may be natural, acquired or developed.
We must strengthen a vision of goals with the American workforce as a prime mover of change in the different industries in the country. It must be taken in consideration the value and potentials of the workers. But things like these happen as many other factors have to be considered. I hope today enlightened us. How important the newspaper industry is, and how important it is to make decisions for the benefit of this agency. To all the American workers who in their own, valuable way have given their contributions in this industry, your work has been greatly appreciated.We are very much thankful to you all.
1. http://www. infowars. com/articles/media/why_so_many_newspapers_cutting_jobs. htm/ Yahoo search engine, October 12, 2006 2. http://www. infowars. com/articles/media/why_so_many_newspapers_cutting_jobs. htm/ Google search engine, October 12, 2006 3. http://www. terryfrazier. com/fullThread$msgnum=1832/ Google search engine, October 12, 2006 4. http://news. yahoo. com/s/ap/20061003/ap_on_bi_ge/job_cuts. Google search engine, October 12, 2006