To try to cut costs, publisher McClatchy announced last week that it is closing seven locations, starting in August. The sites include the Miami Herald and El Nuevo Herald, the Charlotte Observer, The State (Columbia, South Carolina), the Modesto Bee, the Merced Sun-Star, the Tribune (San Luis Obispo, California) and McClatchy’s Washington, D.C. bureau. The work, however, will continue. The company will exit their leases, and staff will work remotely at least until next year, reports Nieman Lab.
In a June 9 letter to readers, Aminda Marques Gonzalez, president, publisher and executive editor of the Miami Herald and El Nuevo Herald and regional director of McClatchy’s Florida news operations, announced the newspaper staff would be moving out of their Doral, Florida offices.
“Dear Readers,
The Miami Herald and el Nuevo Herald will be moving out of its Doral offices in August.
The coronavirus pandemic has accelerated our organization’s ability to work remotely. Since mid-March, most of us have been working from home. From pandemic to protests, we haven’t skipped a beat thanks to technology, communication tools that connect us instantaneously and the hard work of our dedicated staff.
As the business model in our industry continues to change, and due to the economic impact of the coronavirus, we continue to face severe financial headwinds. In this move, we are investing in people over place to ensure our readers receive the level of coverage and accountability throughout South Florida they expect each day from our talented journalists.
We know that the office space of today is not what the office space will be for tomorrow as it relates to social distancing and keeping our employees safe. For that reason, Miami Herald and el Nuevo Herald employees will continue to work remotely through the end of the year. After the New Year, once the commercial real estate industry has sorted itself out with regard to new standards and approaches, we will find a new, centralized home.”
Publishers Daily reports that McClatchy will search for new office space for staff in 2021, but it is not clear what they are envisioning or how a modern newsroom with appropriate space for social distancing will look. In a memo to employees, McClatchy said it views an office that is up-to-date and flexible and a place that serves multiple purposes, including serving as workspace, meeting space and a place to host visitors, “a workspace that complements remote work.”
In February, McClatchy filed for Chapter 11 bankruptcy, working toward restructuring. In addition to cutting costs, the company is trying to restructure legacy debt and pension obligations. In April, McClatchy announced that two of its biggest creditors, Chatham Asset Management and Brigade Capital Management, submitted a non-binding proposal to buy the company. More than 20 other companies have also expressed interest in buying the company. Meanwhile, McClatchy has laid off and furloughed staff, instituted pay cuts and reduced printing schedules.
Insider Take:
McClatchy was in dire financial straits before 2020 when the coronavirus pandemic hit, advertising dollars dried up, and drastic budget cuts and painful personnel decisions had to be made. Closing these offices may save money in the short term, but what does this say about McClatchy’s future? Are these cuts a possible condition of a sale or restructuring? Will McClatchy newsrooms ever look the same again? Will the quality of their coverage suffer with so many experienced staff being let go? Will the company keep cutting staff until there is nothing but a skeleton crew? McClatchy can’t predict the future, nor can we, but it doesn’t look promising.
