'It's so small that it's not material': CEO of local newspaper giant GateHouse Media downplays layoffs affecting hundreds

Benjamin Goggin

May 23, 2019 8:49 PM

Local newspaper giant GateHouse Media conducted is laying off hundreds of people across the country, multiple sources told Business Insider.

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Mike Reed, CEO of GateHouse's parent company New Media Investment Group, downplayed the cuts in an interview with Business Insider, saying they were "not material" when considering the scope of the company.
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Local newspaper giant GateHouse media is making cuts across US newsrooms for a second time in 2019, following at least 60 layoffs in January and February, and losses in Q1 .

Business Insider has confirmed cuts at at least 10 local newsrooms in Florida, Pennsylvania, Texas, and Massachusetts, with potentially more to come late Thursday and Friday.

A GateHouse employee who wished to keep their name private said layoffs could number near 200.

When Business Insider talked to Mike Reed, CEO of GateHouse's parent company New Media Investment Group, he downplayed the cuts, calling them "not material," without providing a specific number of cuts. Later, he reportedly confirmed to Poynter that the cuts would affect "a couple of hundred" people.

"We have layoffs and new hires that you would expect with a company of 11,000 employees," he said. "We're trying to reallocate expenses and resources from non-sales and non-content producing resources and put them into content producing roles. It's just a re-allocation of resources."

Reed said the company plans to hire 30 journalists across the US in the next 30 days.

Small cuts at already small publications have left some devastated. Bill Shaner of Worcester Magazine tweeted Thursday afternoon that after two editors at the publication were laid off, he was the only one left.

"I am the only editorial staffer left, with a full paper to put out next week. Pray for me," he wrote .

The cuts appeared to hit roles across the company, including editors, reporters, and even part-time staff.

This story is developing. Refresh for updates.

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