Citing economy, Chronicle reduces staff

By Chronicle Staff

The Bozeman Daily Chronicle announced Tuesday that it will reduce its staff in response to a sluggish economy and soft advertising revenues.

Effective Aug. 12, the Chronicle will lay off six full-time and three part-time employees in addition to holding nine positions dark, said Stephanie Pressly, the newspaper’s publisher. Five of the positions are in the Chronicle’s newsroom.

“This was a very difficult decision, but current economic conditions left us no choice,” Pressly said. “Though we think the economy is cyclical and hope these cutbacks are temporary, our industry is also changing and we have to be proactive in addressing that.”

The Chronicle currently employs 138 people. The layoffs amount to a 6.5 percent reduction.

Most newspaper companies across the country have suffered declining advertising and circulation revenues in recent years. Metropolitan papers have been hardest hit, and announcements of newsroom and other layoffs have become frequent, even commonplace in recent weeks. In fact, industry Web sites indicate that approximately 6,400 newspaper jobs have been eliminated nationally already in 2008.

The Chronicle and other community newspapers had previously bucked that trend. Focusing on local news, the Chronicle’s advertising and readership have been strong.

Now the state’s fourth largest newspaper, the Chronicle has seen unprecedented growth in the past 10 years with daily home delivery up nearly 4 percent since last year. The Chronicle’s Web site, dailychronicle.com, averages 1.5 million page views a month, adding significantly to the paper’s audience and reach.

Advertising, however, makes up about 75 percent of the Chronicle’s operating revenue.

“We started the year strong, but the second quarter showed a dramatic downturn,” Pressly said. “With reduced consumer spending, businesses have cut back on advertising.”

The newspaper industry as a whole is undergoing a transformation with more focus and resources being put into the Internet. Most news organizations are positioning themselves for what many see as the inevitable, long-term shift in readership and advertising. The Chronicle is no exception.

“The Chronicle has been investing in our online operation for years,” said Pressly. “However, since a page of Web advertising doesn’t yet equal a page of printed ads, we’re in the process of shifting our business model to accommodate both print and online delivery.”

The Chronicle’s parent company, Big Sky Publishing, also owns the Belgrade News, the Lone Peak Lookout in Big Sky, the West Yellowstone News and Montana Quarterly magazine.

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