Lee outsources California finance jobs to Illinois

A May 18 e-mail from Hanford (Calif.) Sentinel publisher Manuel Collazo announces further finance department consolidations. The Sentinel's finance department will be outsourced to The Pantagraph in Bloomington, Ill. -- about 2,000 miles and two time zones away. Collazo says employees will be laid off on May 28, but does not say how many.

Collazo's announcement:

This afternoon we announced a difficult transition within our Finance department. We will begin participating in a Lee-wide finance regionalization program effective May 31st. Many of the tasks that we perform locally will be consolidated within a regional finance center housed in Bloomington, IL at The Pantagraph, a sister Lee newspaper. Unfortunately, as a result several of the current positions within the finance department will be eliminated effective next Friday, May 28th so this will directly impact the employees in these positions. More details regarding the transition will be forthcoming as they are available. As with any of the difficult situations we have dealt with as a team this year, the expectation is that we will all handle the situation with the utmost professionalism. If you have any or receive any questions regarding this announcement please direct them to me at the office number below or Peggy Chapman at 760.739.6610.

Thank you
Manuel Collazo
President & Publisher, Lee Central CA Newspapers
Director of Circulation, Lee Enterprises
Office: (559) 583-2400

Lee Enterprises also has set up a finance center at the Waterloo-Cedar Falls (Iowa) Courier.

(Via e-mail. Send Lee tips and e-mails to lee.ent.watch@gmail.com.)

Courier outsources call center, will lay off 4

The Courier in Waterloo, Iowa, will join the ranks of Lee Enterprises newspapers outsourcing its circulation call center to The Times of Northwest Indiana in Munster, Ind. Two full-time and two part-time employees will be laid off.

The memo from Courier publisher David Braton:

Today we are announcing the regionalization of our Circulation Call Center. Effective March 31, 2010 subscribers calling The Courier will be handled by a call center at another Lee newspaper in Munster, Indiana. Local calls from subscribers related to stops, starts, vacations and delivery issues will be routed to Munster. Munster has access to our circulation system and will text message shortage drivers in Waterloo with instructions for deliveries.

We are familiar with regionalization since we are one of six finance centers in Lee. With this change comes the pain that 2 full time, 2 open positions, and 2 part time positions in Circulation have been affected by our regionalization.

David Braton
Publisher
Courier Communications

(Via e-mail)

A closer look at Form 8-K

Want a closer look at Lee's earnings report? Here's Form 8-K, which is required by the Securities and Exchange Commission. It includes a letter from CEO Mary Junck, who says the company's "streamlining of costs" is on track.

"Thanks in part to 22 percent reductions in the third quarter, we expect to reduce full-year 2009 cash costs, excluding unusual items, about 17 percent below 2008, a decrease of nearly $140 million. Among our many cost actions, we have completed page width reduction across the company, realigned staffing and consolidated or outsourced printing and distribution in several more locations."

Money spent on newsprint and ink has dropped -- 41.4 percent in the last fiscal quarter. Compensation is down 22.4 percent in the last quarter, and 18.3 percent from a year ago. Circulation is down 6.3 percent in the last quarter, and 4.9 percent from a year ago.

The letter also points out that the previously voted on and approved reverse stock split will not take place. (Which is one of those things that happened while this blog was on hiatus.)

You can also see Lee's other SEC filings.

2 Lee papers outsource printing

The Chippewa Herald in Chippewa Falls, Wis., and the Montana Standard in Butte, Mont., are outsourcing printing to other Lee papers.

The Montana Standard moved press operations to Helena on July 13. The Standard's six pressmen were offered jobs in Helena; most of them declined.

The Chippewa Herald will outsource its press and insertion operations to the LaCrosse Tribune in LaCrosse, Wis., on Aug. 11.

(Via e-mails)

Carriers laid off at Post-Dispatch?

McClatchy's Gannett's Belleville (Ill.) News-Democrat will lay off 27 employees and cut three open positions by next week. At the bottom of the News-Democrat's story about its layoffs is a paragraph that says the paper recently started delivering the St. Louis Post-Dispatch in southern Illinois:

(President and Publisher Jay) Tebbe said the job reductions might have been higher if not for other cost-cutting measures, consolidating some of the company's offices to its main headquarters building in Belleville, and signing a contract to deliver the St. Louis Post-Dispatch to P-D customers in parts of Southwestern Illinois.

I assume Post-Dispatch carriers were laid off when this work was outsourced. I know this blog has several Missouri readers -- has anyone heard anything about that?

(Via e-mail)