Medford Transcript to Close Office, Move to Somerville

Parent Company Cuts Salaries, Downsizes Space

– Allison Goldsberry

Medford’s weekly local newspaper, the Medford Transcript, is being forced to close its Medford Square office and will work out of the Somerville affiliate office.

The move is part of cost-cutting measures by parent company GateHouse Media, which has cut salaries and wages of all its employees in Massachusetts.

“As much as we have done everything in our collective power to blunt the negative effects the economic crisis has had on advertising, virtually ALL major metropolitan markets have been hit by advertising declines that have soared to the mid-twenties to mid-thirties percent (compared to prior year months) since early January. These revenue declines have dramatically hit the cash flows of most publishers. We are NOT — thankfully — in the kind of trouble that we never want to be in — producing lots of red ink, HOWEVER, if we don’t act soon, and decisively, we could see advertising trends reduce our revenues to a point where we could no longer cover our cash expenses with any margin of safety,” wrote GateHouse Media New England CEO Richard Daniels in an email to staff.

Salaries have been cut an average of 7.75%, with higher paid employees suffering an even deeper cut. According to Daniels, the salary reduction is temporary and keeps the company from shedding 100 jobs.

Daniels said GateHouse Massachusetts is the only GateHouse region experiencing the salary and wage cuts because, as a “major metro market,” it has seen “substantially greater” advertising revenue losses.

Daniels said GateHouse has suffered from the same financial problems many other newspapers have faced. However, he told employees that local newspapers provide “unique news and information” that is still “very much in demand,” though the business model delivering the news will have to change.

“Our industry IS going through wrenching changes, but a great many of the changes that are bedeviling major Metro papers are poised to benefit us — as long as we remain economically sound in the near term,” said Daniels.

According to a local source, the Medford Chamber of Commerce has offered a desk to Transcript staff to use in the Chamber’s Medford Square office whenever needed.

Transcript editor Nell Escobar Coakley and reporter Rob Barry did not immediately respond to requests for comment.  It is unclear if Barry is remaining in his job or leaving to pursue other opportunities.