Business Insider/Silicon Valley Insider reports, as does Politico.com, that the Washington Post has cancelled its "clever plan to make money off reporters."

Here's the story from Biz Insider by Paul Smalera:

"The Washington Post has canceled plans to host a series of "salons" that would have mixed Obama Administration officials and Post reporters with reps from companies and nonprofits paying as much as $250,000 to attend.

Politico reported the plans this morning after obtaining a flier inviting sponsorships.

Once the news broke, the Post newsroom quickly pulled back on the offer of reporters attending the events. This afternoon, the paper announced the whole even has been cancelled."

Interestingly, the Biz Insider says that such events are really nothing novel; that lobbyists and reporters have in effect been in bed together for years, and the tradition at the Post dates back to the days when Katharine Graham was the publisher.

Sez Smalera: "These salons merely reflect the power structure that already exists in Washington. Most of the people in the room probably already know one another. The idea that reporters can actually avoid these types of encounters is laughable. For a media company to set up a paid event and request editorial staff to attend is nothing new..."

In fact, he predicts, media companies will become more brazen in the future about promoting such events.

Does this mean that the Star's Dennis Ryerson will be hosting in-house meet-and-greets for lobbyists? He already is under the influence; when at Des Moines, the Columbia Journalism Review nailed him for his hiring strategy for a new biz editor. He brought in the local Chamber of Commerce to interview a candidate.

Chamber of Commerce one day, lobbyists the next....nothing new under the sun.....

Thanks to the two readers who tipped me off about the about face.

This went out July 1 from Bob Dickey at Gannett HQ in McLean, Va.  He is the president of U.S. Community Publishing, which includes workers at all Gannett newspapers. Indianapolis Star publisher Michael Kane sent it out in Indianapolis:

To:          U.S. Community Publishing Employees

From:     Bob Dickey

I want to talk with you about our restructuring efforts, as we continue to battle these difficult economic conditions and the impact on our advertisers.  With your help, our various cost savings initiatives are making a difference.

Nevertheless, we will need to implement job reductions to align our resources with the revenue realities we face.  Currently each location is finalizing its plan, taking into consideration the local economy, results so far this year and the prospects going forward.

Each plan is different and designed to address the ongoing local needs. All of them, however, involved extremely difficult decisions. Approximately 1400 employees will be impacted by the job reductions across the division.  Your publisher or general manager will communicate the local plans, and we expect the vast majority of the reductions will take place by July 9.  In a select few cases, the implementation may take longer. There will not be any furloughs for the rest of the year.

I want to stress that the job reductions are not a reflection on these employees or their work. We truly value their many contributions and thank them for their efforts over the years.

Unfortunately, we must take these steps because the advertising environment remains challenged. There have been some promising signs of a recovery, but the reality is the improvements are not broad-based and the economy continues to be fragile.  

Even so, we know the economy will improve. To be ready, we need to continue our transformation and maintain a strong financial position. We must publish our newspapers, produce our Web sites and pay down our debt. By taking all these steps today, we will be stronger tomorrow.

Measured against our peers in the media industry, we are healthy and capable of moving forward. We are in this position because we have proactively responded to the financial conditions with actions such as these.

We continue to see good ideas coming from all of you, and we are becoming more innovative everyday. This combination of forward thinking and good fiscal management will, I believe, ultimately result in a return to success for our company.

So, please keep those thoughts and ideas coming. As always, you can email me or call with your comments.

So much for the assertion that the Washington Post would rise above the multitude of problems plaguing the newspaper industry. What I had read is that it was "safe" financially because it's company owns so many other sources of revenue, that it was properly diversified, that the Post would not get in the red.

This story from politico.com today, sent by blogger Gary Welsh and IT guru Tom Henderson, contradicts that scenario.

Here is the latest, from reporter Mike Allen, about the Post selling access for $25,000 -- to lobbyists, yet:

"For $25,000 to $250,000, The Washington Post is offering lobbyists and association executives off-the-record, nonconfrontational access to "those powerful few" — Obama administration officials, members of Congress, and the paper’s own reporters and editors.

The astonishing offer is detailed in a flier circulated Wednesday to a health care lobbyist, who provided it to a reporter because the lobbyist said he feels it’s a conflict for the paper to charge for access to, as the flier says, its “health care reporting and editorial staff."

The offer — which essentially turns a news organization into a facilitator for private lobbyist-official encounters — is a new sign of the lengths to which news organizations will go to find revenue at a time when most newspapers are struggling for survival.

And it's a turn of the times that a lobbyist is scolding The Washington Post for its ethical practices.

"Underwriting Opportunity: An evening with the right people can alter the debate," says the one-page flier. "Underwrite and participate in this intimate and exclusive Washington Post Salon, an off-the-record dinner and discussion at the home of CEO and Publisher Katharine Weymouth. ... Bring your organization’s CEO or executive director literally to the table. Interact with key Obama administration and congressional leaders …

“Spirited? Yes. Confrontational? No. The relaxed setting in the home of Katharine Weymouth assures it. What is guaranteed is a collegial evening, with Obama administration officials, Congress members, business leaders, advocacy leaders and other select minds typically on the guest list of 20 or less. …

“Offered at $25,000 per sponsor, per Salon. Maximum of two sponsors per Salon. Underwriters’ CEO or Executive Director participates in the discussion. Underwriters appreciatively acknowledged in printed invitations and at the dinner. Annual series sponsorship of 11 Salons offered at $250,000 … Hosts and Discussion Leaders ... Health-care reporting and editorial staff members of The Washington Post ... An exclusive opportunity to participate in the health-care reform debate among the select few who will actually get it done. ... A Washington Post Salon ... July 21, 2009 6:30 p.m."

POLITICO has asked The Washington Post for a response, and will post it when it arrives.

Sources at the paper say the marketing offer may be getting ahead of what the newsroom is prepared to deliver. The newspaper recently hired someone to organize conferences, and his primary mission is to stage on-the-record events about topical subjects in Washington. Conferences are a trend throughout the news industry. "

A dead newspaper.

Here's the latest from Editor and Publisher -- Gannett will eliminate 1,000 jobs (confirmed) and possibly as many as 2,000 or more.

Here's the gist:

"NEW YORK The Gannett Co. confirmed today that it will reduce its workforce within the next several days.

Gannett executives told told The New York Times' Richard Perez-Pena that the McLean, Va.-based company is getting ready to issue another round of layoffs.

The company is preparing to lay off more than 1,000 employees as the largest newspaper publisher's workforce continues to shrink along with its advertising sales, AP reported last Tuesday.

Between 1,000 and 2,000 people will lose their jobs in Gannett's latest round of cutbacks, according to a story published Tuesday on The Wall Street Journal's Web site, cited by AP. The Journal quoted an unnamed person familiar with the McLean, Va.-based company's thinking.

Gannett Spokeswoman Tara Connell told E&P: 'We have been doing layoffs and we will be doing layoffs. In terms of a large-scale layoff, we have no comment.'"

Lovely. Now I know how to dress for Halloween: a dead newspaper. Blood is an appropriate touch, since that is what is being drained by Gannett from its workers.

Anthony Schoettle, who covers media for the Indianapolis Business Journal, has written an insightful and chilling piece about the future of the Indianapolis Star.

Now that the union has rejected management's insulting offer, what is the next step?

"The proposed contract calls for an 8-percent pay cut July 1—the day after the vote (that it today) —and another 4 percent Oct. 1. (John) Kridelbaugh (vice president of marketing development) said management will take a 'cross that bridge when we come to it' approach to the proposed July 1 pay cut if the contract isn’t approved.

"Some union members fear a 'no' vote from the union could evoke an even larger pay cut—as high as 15 percent—from management. "

It gets worse. Schettle has found a gold-mine source in Joseph Boyce, a retired Wall Street Journal editor now teaching journalism at IUPUI.

Says Boyce:

“This is it, high noon at the O.K. Corral. I really fear the next moves in this chess match could really hurt the product, and it’s news organizations like The Star that are essential to a healthy democracy.”

Other points (all made on this blog in the past):

There have been rumors that Gannett will roll out massive layoffs July 8 -- 4,500 people will lost their jobs across the nation, according to reports from Jim Hopkins' Gannettblog.

Gannett is in big trouble. "Gannett has seen its operating income decline steadily, from $1.3 billion in 2004 to $747 million in 2008. The company doesn’t detail revenue for individual newspapers, but industry analysts believe The Star has seen a double-digit percentage decline in recent year," writes Schoettle.

Finally, "Gannett has another problem. The company has a lot of debt coming due in the next two years—$712 million by June 2011, followed by $2.8 billion that matures by June 2012. Gannett has little room to change the terms of its debt covenants, leading industry analysts to believe the company may have to start slashing costs and selling off assets in the next two years."

The article also reports on the low morale at the Star and the fear that many employees will leave as soon as they can better-deal the Star.

Here is the money quote from Boyce:

“What’s lost in all this is that the only way for a news organization to maintain trust and integrity is through trained, ethical reporters and editors. But Gannett has no loyalty to that ideal. They only have loyalty to their stockholders, and that has caused them to be incredibly shortsighted.”

Check out the entire IBJ article at ibj.com

No kidding.

http://www.ibj.com/