Gannett Co. is cutting 2 percent of its workforce, or 700 employees, at its U.S. Community Publishing division as the company struggles to turn the corner on a deep downturn in advertising revenue.
"As we reach the mid-point of the year, the economic recovery is not happening as quickly or favorably as we had hoped," wrote Robert Dickey, president of the division, in a memo to employees Tuesday.
"National advertising remains soft and with many of our local advertisers reducing their overall budgets, we need to take further steps to align our costs with the current revenue trends."
Gannett is the largest newspaper chain in the United States, home to more than 80 daily papers including USA Today, the Arizona Republic and the Indianapolis Star, and is considered the bellwether in the industry.
The company reported a decline in first-quarter profit and revenue driven in part by a 7 percent drop in advertising sales at its publishing division.