Life, food, events, and community in Albuquerque, NM

Journal Publisher Grinches Out, Cancels Christmas

...American Home possibly to blame

In a memo to Albuquerque Journal employees, dated two days ago, Journal publisher Tom Lang broke the bad news that the paper's employees will not be receiving their annual bonuses this year. And sure sure, hard times and all. But the Journal has gotten away for years with depressing staff pay through the use of the bonus. Former newspaper staff report participating in canned food drives to help out some of the paper's lower-paid employees. And regardless of what media owners like to tell us, even in lean times owners' margins aren't all that bad.

Just to put it all in context, grocery stores operate on an average 3% margin, but newspapers the size of the Journal have historically enjoyed something closer to 15%. Which means I seriously doubt that Mr. Lang is hurting all that much, while his employees -- many of whom make amounts that make one cringe even in Albuquerque's relatively inexpensive market -- will be scrambling.

On the other hand, one could take this as a sign that the local economy is suffering in line with the national economy. A thought that, strangely, Mr. Lang seems to think he needs to explain to his staff, who probably know it way better than he does.

You should be able to enlarge the letter by right clicking and selecting View Image.

12 Comments

Comment by cathyray on November 19, 2008 at 8:30pm: Including the big bosses n all?

Comment by SteveJ on November 19, 2008 at 10:07pm: I agree with the commentary above, sort of. This is definitely no typical year. It sounds like it was the Journal Board that decided, not Lang himself. Although, I imagine he does have quite the sway. I imagine a lot of his "explanation" was geared towards staff who might not know all the details. I doubt the letter was going only to reporters and editors.

Comment by tinsree on November 20, 2008 at 12:37am: to my knowledge employment has remained steady at the j. that's a heck of a lot more than you can say about most major market newspapers. considering that circuit city and american home where two of the biggest advertisers, i doubt lang is swimming in a 15% margin.

Comment by Kitson Harvey on November 20, 2008 at 8:51am: Not exactly steady. They downsize through attrition at the Journal, and some sections are really hurting because they lack staff. Oh and also, the Journal grapevine says that the regional sections are on the block (is that the right word? Regional? I'm sure not). As in the westside edition. I can't imagine they'll chop Rio Rancho or North, tho.

I'm having some trouble digging up the members of the Journal Board, but I did find this little nugget in the paper's online bio of Lang:

He started Masthead International, a press-erecting and machinery-moving company with an electrical contracting arm under the Masthead name; ADSAC bulk-mailing service; Leeco Grounds Management; Research and Polling Inc.; Corporate Security Investigations; Snaproll Aerobatic Company Inc.; and Magnum Systems; and he acquired Starline Printing.

He also founded a real estate company, Journal Center Corp. , and developed Journal Center, the trend-setting business and industrial park in which Albuquerque Publishing Co. is the anchor tenant. With Lang's insistence on top-quality architecture and construction, Journal Center has become one of the prestige business and industrial addresses in Albuquerque.

Journal Center Corp. also developed Las Brisas estate acreage in Corrales.

For relaxation, Lang practices aerobatic discipline in his Russian-built Sukhoi aerobatic aircraft, does tournament-style water-skiing with his children and reluctantly volunteers on the San Joaquin River in California, and drives a Harley-Davidson motorcycle.

Comment by tinsree on November 20, 2008 at 9:16am: good point about attrition, however that's still better than the pink slips being served up around the country. bad mamangement? well maybe, but only if you agree that that is an industry wide problem. the point is, yeah lang is the rich white ghost of the j, but this is hardly a sign of particualrly bad management or evil.

Comment by Kitson Harvey on November 20, 2008 at 9:17am: To Just North's point: Businesses like to dump all of their bad news at once (in accounting that's called The Big Bath, which I find a delightful term). It's easier and more politic to say "the economy!" and act like it's a sudden thing than to admit that poor management has hurt your company over the long term. Nobody gets blamed but poor American Home (although I do sort of suspect a similar action on their part) and you pass the pain to your employees without having to take the blame for your crappy management and (ahem) complete and utter failure to address the challenges of digital media. I mean, nobody's doing digital all that well from a revenue perspective, but the Journal can't even make their site navigable.

Comment by Celine on November 20, 2008 at 9:31am: Perhaps the Journal should start using more content and less obliviously biased opinions in their paper, I love reading a morning paper, but I want the facts, presented in a professional way, not someone's personal opinion, emotional response, or a corporate agenda.
Mmm cranky, more coffee is needed for me . . . .

Comment by once banned twice shy on November 20, 2008 at 10:45am: This doesn't surprise me one bit. In my opinion, Mr. Lang is the classic "I've got mine" Republican business owner. He could probably sell his private jet and manage to give his employees a bonus, but noooooo.

Comment by ABQrising on November 20, 2008 at 10:54am: Tough industry. I don't think the Journal would ax Christmas bonuses unless it were necessary. Very little upside to kicking your employees in their guts around the holidays. I doubt there is anything diabolical about this move.

I also believe Lang and Journal employees are equally aware of the Economy's health.

Comment by Mary-Ann on November 20, 2008 at 5:21pm: I worked at the Tribune until we closed earlier this year and even with all the uncertainty, last December we got a bonus.The newspaper industry is tough but I doubt that it is so bad that Lang couldn't spare a few extra dollars for his employees.