Gannett to lay off 700 workers

TYSONS CORNER, Va. — Newspaper publisher and broadcaster Gannett Co. will lay off about 700 employees, or two percent of its overall workforce, according to an internal memo issued Tuesday.

The memo was issued by Bob Dickey, head of the company’s US Community Newspapers unit. A Gannett spokesperson was not immediately available for comment.

In the memo, Dickey told employees that “slow job creation and now softer auto ad demand continue to challenge revenue growth” in the company’s domestic newspapers. He added that national advertising also remains weak, and a number of local advertisers are reducing their ad budgets.

Gannett reported a 23-percent profit decline in the first quarter of 2011. Ad revenue at Gannett’s publishing segment fell 7.3 percent to $601.7 million — the worst year-over-year decline since the first quarter of 2010.

Gannett owns 23 television stations and publishes more than 10 newspapers, including USA Today.