The Death of Newspapers

I noted with interest David Carr’s article in Monday’s New York Times titled, “Newspapers Jettisoning Top Talent to Cut Costs”. It begins by detailing how Circuit City came up with a plan in March of 2007 to beef up its sagging bottom line by firing its most talented and experienced employees as a cost saving measure. You see people who have more experience get paid more money.

Of course the short term benefit of slashing payroll always has a long term consequence. Customers who could no longer get an answer to their questions from junior sales folks on the floor at Circuit City simply went somewhere else to buy a tech gadget. If you tried to buy a computer at Circuit City last year you already know that. I tried, quit and went to Best Buy for my new laptop.

So it came as no surprise to me that Circuit City declared bankruptcy last week.

But Carr goes on to argue that newspapers are taking the same short term solution as Circuit City. They are cutting the most experienced reporters and editors from national and local newspapers in order to stop the red ink from dripping all over their balance sheets.

Unfortunately, when smart readers discover that they have more experience and worldly knowledge than the kids giving them the news, they will simply cancel their subscriptions and move to the internet.

And that downward spiral will spell the end for experienced and objective print journalism.

(Brian Banmiller is a national Business Correspondent for CBS News Radio, free lance writer and public speaker. The former television business news anchor in San Francisco can be reached at brian@banmilleronbusiness.com .)