Two top executives at newspaper publisher Tribune are stepping down as the company deals with its largest shareholder, a hedge fund known for cutting newsroom jobs, andgrapples with a decline in revenue as the print-ad business shrinks.
The Chicago-based company, which owns the Chicago Tribune, New York Daily News, Baltimore Sun and other major daily papers, said in a Monday statement that Chief Executive Timothy Knight and non-executive chairman David Dreier are both leaving their positions. The company is promoting chief financial officer Terry Jimenez to be the new CEO effective January 31.
In a statement, Knight, who became CEO last January, said that the past year was focused on stabilizing Tribune financially so that the company can invest in quality local journalism, and that the company was in a “solid position to continue its transformation.” In a memo to staff, he said the company will need to continue adjusting its costs to “the current revenue reality.”
Jimenez has been Tribune’s CFO since 2016. He has also worked for Newsday and in industries outside media. His statements on Monday acknowledged that Tribune wouldcontinue repositioningitself to navigate “industry-wide challenges” while improving financial results.
“We don’t know what this means, but remain concerned about the company’s commitment to journalism,” tweeted the Baltimore Sun Guild, the union representing that paper’s reporters, photographers and other staff. The Chicago Tribune Guild put out a statement saying that it was glad to hearboard member Philip Franklin, the new non-executive chairman, say that the company would focus resources on employees and journalism.
Hedge fund Alden Global Capital became Tribune Publishing’s largest shareholder last year; it holds a 32 percent stake. Alden owns one of the country’s l argest newspaper chains and is known as a cost-cutter that eliminates newsroom jobs to squeeze out profits. Its papers include the Boston Herald, Denver Post and San Jose Mercury News.
Alden has been seeking growth. It previously tried to acquire Gannett, the owner of USA Today, which instead was acquired by another newspaper chain, GateHouse, that is managed by the private equity firm Fortress.-AP
