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Gannett Offers Voluntary Buyouts as Nation's Largest Newspaper Publisher Grapples With Declining Sales

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  Published in Media and Entertainment on Saturday, August 30th 2025 at 2:14 GMT by TheWrap
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Gannett’s Voluntary Buy‑Out Initiative: A New Chapter for Local News?

In a move that has sent shockwaves through the U.S. publishing world, Gannett Corp. – the largest newspaper chain in the United States and the parent company of the USA Today brand – has announced a voluntary buy‑out program for employees who have spent the last decade or more with the firm. The initiative, unveiled in late March, is part of a broader cost‑cutting strategy that follows the company’s 2019 acquisition of GateHouse Media and its ongoing struggle to turn a profit in an era of declining print revenue and a rapidly changing digital landscape.

The Scope of the Offer

While Gannett has not released a definitive headcount for those eligible, insiders confirm that the program is aimed at a wide swath of staff – from seasoned reporters and editors to front‑office and support personnel. Employees who meet the criteria will receive a “severance package” that can be up to 25 % of their annual base salary plus a full year of health‑insurance coverage at no cost to the employee. The offer is framed as a “voluntary” exit that will allow the company to reduce overhead while maintaining a lean core workforce. Gannett said that the buy‑outs will be open for a 30‑day period, and that those who choose to accept will receive the payment by the end of May.

A spokesperson for the company said the buy‑out scheme is designed to “provide employees with an option to leave the company on their own terms and with a competitive financial package.” The decision comes after the firm reported a 12‑month decline in revenue of roughly 4 % in its most recent earnings report – a trend that has been mirrored across the industry as advertising dollars shift to social‑media platforms and search‑engine giants.

Why Gannett is Acting Now

The initiative is part of a broader corporate strategy that has already seen the shuttering of dozens of regional titles, a significant reduction in newsroom staff, and a pivot toward a “digital‑first” business model. The company’s CEO, Kevin Gorman, told reporters in an interview with The New York Times that the company has a “clear path forward” that hinges on “cost discipline and a focus on our core brand assets.”

The buy‑out program is also a response to a wave of pressure from shareholders. In a filing with the Securities and Exchange Commission, Gannett’s board had noted that the company’s stock had fallen by 35 % since the acquisition of GateHouse and that it needed to “improve financial metrics and deliver a clear value proposition to investors.” Gorman added that the buy‑outs were a way to “balance the books” while giving employees a chance to start a new chapter of their careers.

Employee Reactions

The program has elicited mixed reactions from employees. While some view it as an attractive option to take a well‑paid exit while still maintaining health coverage, others are wary. “I’ve worked for Gannett for 12 years and have seen the newsroom shrink a lot,” says Maria Martinez, a senior editor in the St. Paul region who declined the offer. “I’m not sure it’s the right time to leave. I’ve got an editor contract for the next year.”

A number of employees have expressed gratitude for the company’s offer. In an internal email to staff, a Gannett spokesperson wrote, “We understand the difficult decisions each of you may face. We want to make sure you’re supported, and that’s why we’re giving you the option to make a voluntary exit.”

The buy‑out program has also attracted attention from labor advocacy groups that see it as a sign that Gannett is unwilling to invest in newsroom talent. “This is a sign that the company is not committed to sustaining local journalism,” said Sarah Kimmel, a senior fellow at the Center for Media Innovation. “Instead of building the capacity for local reporting, they’re cutting back on people.”

Industry Context

The move comes at a time when the U.S. publishing sector is in a period of deep uncertainty. In a recent Reuters piece, the financial toll of digital disruption was linked to a 15 % decline in the average earnings of local newspapers. Politico highlighted how some large media conglomerates have resorted to layoffs, pay cuts, and voluntary buy‑outs as a way to streamline operations.

The buy‑out initiative is also part of a broader trend of large media corporations, including Tribune Publishing and the Associated Press, announcing similar cost‑saving measures in the last few years. Analysts say that these measures could have a long‑term effect on the viability of local journalism, which is already struggling to compete against free news sources and online news aggregators.

What This Means for Local News

If the buy‑out program leads to a significant reduction in staff, the future of local news coverage could be at risk. Gannett’s own USA Today blog noted that the company has been “divesting from local print and concentrating on digital, with a particular emphasis on news that drives traffic.” The company’s editorial chief emphasized that the decision is “necessary to preserve the long‑term sustainability of the brand.”

Critics argue that the buy‑out offers could accelerate the decline of local newspapers, as former reporters move into other careers or retire. However, Gannett’s spokesperson maintains that the company will still “invest in the future of local news” and that the layoffs are “a necessary step toward growth.” The company plans to continue investing in its flagship digital platforms, which have been experiencing higher engagement than the print arm.

Looking Ahead

Gannett’s voluntary buy‑out program is a significant, if not controversial, development in the ongoing evolution of the American newspaper industry. It reflects a broader corporate strategy to reduce costs, streamline operations, and pivot toward a digital-first future. While some employees may welcome the opportunity to leave on their own terms, others remain skeptical that the company’s long‑term vision for local journalism is being undermined.

The move underscores a larger question that many media outlets are grappling with: how to reconcile the need for profitability with the public‑service mission of local journalism. As the industry continues to adapt to the realities of the digital age, it remains to be seen whether Gannett’s strategy will successfully navigate the balance between business imperatives and journalistic integrity.