SYRACUSE — A “severe” and “abrupt” downturn in Scotsman Media Group’s Pennysaver business prompted the company stop publishing the weekly newspapers March 10 and cut about one-third of its workforce as a result. The downturn began in December and continued through February, Scotsman President William Veit says. The company considered a major overhaul of the […]
SYRACUSE — A “severe” and “abrupt” downturn in Scotsman Media Group’s Pennysaver business prompted the company stop publishing the weekly newspapers March 10 and cut about one-third of its workforce as a result.
The downturn began in December and continued through February, Scotsman President William Veit says. The company considered a major overhaul of the papers, but ultimately decided to walk away.
“We didn’t have the capital nor the desire to invest in that way,” Veit says.
With the end of the Pennysavers, which Scotsman began publishing in 1954, the company cut about 60 jobs. Veit declined to say whether employees affected by the moves received severance.
Scotsman shuttered Pennysaver sales offices in Auburn and Cortland. It also eliminated jobs at its offices in Syracuse, Fulton, and Chenango Bridge.
The firm how has about 100 employees, including about 65 in Syracuse, where it has offices and printing facilities. The Fulton location is mainly responsible for Scotsman’s Valley News newspaper, which covers that local area. The Chenango Bridge site houses additional printing capabilities.
The Pennysavers included 16 different publications that covered communities stretching from Fulton to Cortland and Geneva to Fayetteville and Manlius. The papers reached 210,000 homes, Veit says.
The newspapers’ advertisers, mainly small and mid-size businesses, have been under pressure amid the weak economy, Veit says. That customer base also has numerous options for promoting themselves, including other print newspapers and magazines, television, radio, and digital venues.
Veit declined to comment on the reason for the suddenness of the downturn. He did say Scotsman acted quickly to protect the rest of its business.
“We felt that had we not made this change, the future of the company could have been in jeopardy and we weren’t willing to take that risk,” he says.
Scotsman will continue to provide commercial printing and distribution services. The company will also continue to publish the Valley News, Today’s CNY Woman, Vacationer, and more.
Commercial printing accounted for about half of Scotsman’s revenue before the Pennysavers ended. That work will now be responsible for 80 percent to 85 percent of the firm’s business.
The company’s other specialty publications will account for the remainder, Veit says. He declined to comment on Scotsman’s annual revenue.
Outside of the Pennysavers, Scotsman’s business was strong, Veit says. The company handles more than 100 commercial printing jobs every week. Its other publications have been doing well.
The weakness in the Pennysavers would have limited Scotsman’s ability to focus on its better-performing divisions, Veit says.
The company plans to aggressively pursue new commercial printing business in its current markets and neighboring states to fill the open press time created by the end of the Pennysavers, he adds.
Editor’s note: Scotsman Media Group prints The Central New York Business Journal and its sister publications The Mohawk Valley Business Journal and The Greater Binghamton Business Journal.
Contact Tampone at ktampone@cnybj.com