The Chattanooga Times Free Press told employees on Monday that the newspaper had improved financial performance over the prior year quarters and employees were receiving two percent bonuses.
Sources said at the same time, the newspaper announced some layoffs. Those include four people in the newsroom and an unspecified number in other departments.
Bruce Hartmann, president, attributed the improved performance to a steep rise in circulation rates.
He said income from classified and display ads was down, however.
Mr. Hartmann said a salary freeze remains in place.
Here is his letter to employees:
To: Chattanooga Times Free Press Employees
Fr: Bruce Hartmann
Date: January 26, 2015
Re: Bonuses Thank you for the effort you put forth last year. Due to that effort, I have some great news to share. For the combined second and third quarters of 2014, the Chattanooga Times Free Press improved financial performance over the same quarters of 2013. This is due primarily to increased circulation revenue from our higher priced subscription policy implemented during last year and your watchful eyes on expenses.
Overall advertising revenues are down in the second and third quarters, coming from both Classified and Retail. We are working hard to put plans in place to help us change the trend.
Based on these results and trends, we do not believe we can yet remove the wage freeze we have had in effect, but we do want to share with you our improved results over these two quarters of 2014.
We have prepared a one-time special bonus equal to 2% of your regular wages and salaries for those of you working during this two quarter period of 2014.
This bonus will be paid on January 28th, 2015 as a separate paycheck. These will be real checks.
Our success in the future depends more than anything else on the dedication, innovation and hard work of those who make the Times Free Press the best newspaper in Tennessee. We appreciate everything you have done to help us be successful and we look forward to sharing even more positive news with you in 2015.