After returning from holiday break, 46 employees at CNHI's newspapers faced mandatory four-week furloughs as confirmed by company officials. This decision, affecting about 3% of the workforce, stemmed from a disappointing financial performance in the typically strong fourth quarter. The company, responsible for smaller papers with around 10,000 circulation, is grappling with ongoing financial difficulties that may escalate due to potential new tariffs on Canadian newsprint. Analysts suggest this situation reflects broader industry challenges, especially amidst a tough economic outlook for 2024.
The furloughs were precipitated by a very 'soft fourth quarter,' usually the best of the year for newspapers, buoyed with ads for Christmas shopping.
Our ethos is to save newspapers, so quick action to trim expenses was prudent.
While the paid digital audience for news is expected to grow, I don't detect indicators of even a modest overall turnaround compared to 2024.
An earlier round of tariffs in 2018 was punishing for metro newspapers and drove some small-town weeklies under.
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