Is This The Real Reason for the Scripps Cuts?

It seems like a broken record. Scripps is once again laying off hundreds of people.

Scripps put the figure at 268 layoffs, but it will likely be a bit higher as this is not counting the cuts made as Scripps takes control of WTVQ in Lexington.

For the past few years, Scripps has been putting people out of work, and now they are doing it again.

But why these cuts, and why now?

Well, you might remember that back in February, Scripps extended the contract of CEO Adam Symson. With how badly the company had fallen, along with the stock price, it was a head-shaker that he was given a new deal.

But, what was in that deal could be the reason for another round of large cuts.

In his deal, Symson’s contract included a large one-time $10 million performance-based cash award tied to Scripps’ target of boosting adjusted earnings by between $125-150 million over the next three years.

In other words, fewer salaries, more money. So, Symson is more than willing to put crap on TV, done mostly by automation, instead of people. This move will save stations a lot of money, and that will bring big bucks to Scripps CEO.

First off, a company that cares about a quality product should never entice the CEO with making cuts.

I remember one time, I was offered a News Director job, and it included a bonus to me if the news department as a whole came in under budget. I told the General Manager that was looking to hire me that I did not like that clause in the contract. “Why, it could make you a lot of money,” the GM said after I pushed back.

I told the GM that was exactly the reason I did not want a bonus clause in my contract. I said that while a major news story might need four crews to cover the story, I might be tempted to just send two, knowing that by saving money, I could get a bonus.

I didn’t want to be tempted and turned down the offer of a bonus.

Adam Symson did not do that and is now doing his best to cash in. As one Scripps employee said to FTVLive, “How much of a bonus will the employees who are now forced to handle the work of the laid-off employees get for doing the extra workload?  We all know the answer to that.”

Yes, yes, we do.