The Los Angeles Times plans to cut 1,720 production and distribution jobs,including potentially about 240 in Orange County,as part of two separate moves, one of which previously was announced.
Last May, the Times said it plans to stop using employees to distribute papers to news racks and other single-copy sales locations, in favor of independent companies. The Times, part of Chicago-based Tribune Co., already uses independent distributors for home delivery.
The Times last week announced that 1,570 part-time circulation jobs are to be cut and 12 distribution centers are set to close in Southern California, including two in OC, by the end of September.
Most of the employees, who assemble papers for delivery, worked an average of 20 hours per week.
“The newspaper industry has shown that independent contractors can do a more effective job of handling single-copy distribution,” said Steve Lee, senior vice president of circulation and consumer marketing for the Times in an internal memo circulated in May.
In the memo, Lee noted that the change adds 38 to 40 independent single-copy distributorships, in addition to the Times’ 105 home delivery distributorships.
“This move will allow us to concentrate resources on retail sales and marketing and substantially improve our focus on serving major retail customers,” Lee added.
The Times plans to form a new retail sales and marketing group of about 25 employees to “better serve large supermarket outlets like Ralph’s, Von’s/Pavilion’s and other specialty stores like Starbucks,” according to the memo.
In Orange County, the change translates to the closing of two distribution centers, in Fullerton and Santa Ana, said Martha Goldstein, a Times spokeswoman.
A total of 195 employees,97 in Santa Ana and 98 in Fullerton,are set to be laid off by the end of September, according to a state agency that tracks announced layoffs.
Goldstein would not confirm the totals. The company also did not disclose how much money it hopes to save in the move.
Since the Times already uses independent distributors for home delivery, Goldstein said, “it will be a seamless change from a reader perspective.”
In a separate move, the Times announced on July 11 that it contracted with Ryder Integrated Logistics to deliver newspapers to circulation distribution centers.
“Following months of a detailed study, we concluded that the requirements to maintain a trucking operation have become increasingly complex,” said Mark Kurtich, senior vice president of operations, in an internal memo.
In the next month, 150 employees,truck drivers, fleet mechanics and garage supervisors,are set to be laid off at three Times production plants: Costa Mesa, Chatsworth and downtown Los Angeles, said Goldstein, who would not disclose the number of people affected in Costa Mesa.
A state document puts the number at 47 employees in Costa Mesa. Goldstein would not comment on that figure, either.
According to Kurtich, the Times is not looking to outsource any other areas of production.
He also noted that the move to Ryder gives the Times several benefits that translate to savings. Those include lower delivery, routing and maintenance costs, a systematic replacement of the Times’ aging fleets and the ability to “reallocate capital investments into other parts of operations and the rest of the business.”
The recent changes are in line with the Times overall move to analyze operations in every department and make changes for efficiencies. Tribune, which purchased the paper last year, has initiated the moves.
The editorial department, including the newsroom in OC, also has seen changes, with most recently the sports department in Costa Mesa being relocated to the Times downtown office.
In a separate move, the Times continues to take applications for a voluntary early retirement program open to newsroom staff, which was announced by Tribune in June, according to Goldstein.
At the time, Tribune reportedly said it would look to reduce its work force by 6% because of an advertising slump that sharply reduced revenues.
Goldstein said the final application deadline was Aug. 2 and 30 applicants will be accepted. n
