paidContent.org - Updated: FT To Do Some Buyouts; Salary Freeze; The Memo

The Pink One will pass out some pink slips, though more in form of buyouts than actual layoffs, reports Reuters, citing an internal memo sent out today by FT CEO John Ridding. The company has already done some redundancies in its library/research division in October. For those interested in a buyout, Dec. 19 is the cutoff. It also is freezing salaries for employees who earn more than $50K a year or the equivalent, which means most of the mid- to senior journalists at the company. That freeze decision could be reviewed if conditions improve later. Also, FT is offering some employees the opportunity to work three- or four-day weeks, which of course means at a lower salary.

From the memo: "We continue to perform well against the competition, taking market share in advertising, readership and circulation...But with our customers and advertisers being affected we need to prepare for difficult times. We need to act early and decisively to reduce costs so that we can sustain our investment and our success."

Updated: The full memo below:

From: "John.Ridding"Subject: 2009 pay policy and other measures

Dear all,

Every day we report, with unrivalled authority, the impact and repercussions of the global financial crisis. As you'll know from our coverage, financial turbulence has moved rapidly into the real economy, affecting a broad range of businesses and sectors.

We have naturally been assessing the implications for the FT, and how we should respond to this fast-moving crisis and the recession it is bringing. And I wanted to update you on our position and plans.

We continue to perform well against the competition, taking market share in advertising, readership and circulation. But with our customers and advertisers being affected we need to prepare for difficult times. We need to act early and decisively to reduce costs so that we can sustain our investment and our success. More of the memo after the jump...

We have already been working hard on this front. The global efficiency programme and the strategic operations review, to which many of you have contributed, have secured substantial savings over the past year, across print and distribution, the integration of acquisitions and the renegotiation of contracts. These savings and the redeployment of resources have enabled us to invest in new formats, in print and online.

With global economic conditions continuing to deteriorate, and with the prospect of a tougher and more difficult environment in 2009 and possibly longer, we are taking the following steps:

-- In line with Pearson (NYSE: PSO) guidelines, an annual base salary increase for 2009 will be given only to those earning less than £30,000, or US$50,000 (or local currency equivalents). For other employees, base salaries for 2009 will be held at 2008 levels. If conditions improve more rapidly than expected we will review this salary decision. But we'll need to wait at least until the second half of the year before considering that.

-- We are offering voluntary redundancy (with acceptance depending on whether your departments can accommodate requests). Expressions of interest should reach Kim Brosnan or your department manager by December 19.