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Financial fallout from coronavirus threatens survival of local newspapers

Like many small newspapers across the country, Snohomish County's Everett Herald cutting staff hours and being forced to make tough decisions due to the coronavirus.

EVERETT, Wash. — In the midst of a deadly global pandemic, the news media has, arguably, never been more important to the American people. Now, though, newspapers are falling victim to the coronavirus (COVID-19), as well.

Furloughs, cutbacks, and closures are sweeping the industry at the same time it is being considered an "essential service."

"These are unprecedented times that are just gut-wrenching," said Everett Daily Herald publisher Josh O'Connor, stepping out of his largely deserted newsroom, Thursday.

This week, O'Connor published a letter in the Everett based newspaper telling readers "unprecedented challenges" are forcing drastic changes.

More than a quarter of the paper's 375 employees have been furloughed or had their hours cut back. The sports and feature sections have been suspended and there's no end in sight.

"When we still see infection rates rising in Washington and across the world, there is real concern that we're not going to see the end of this in the near term," O'Connor said.

Gov. Inslee's stay-at-home order, which was extended to May 4 on Thursday, has left few stores open and most with no reason to advertise. That has sunk revenue by more than 30% at the Everett Herald. 

At the same time, the pandemic has brought a 180% surge in online readership at the Herald, but because we're in the midst of a national disaster, the paper isn't charging people for that content.

It's a perfect storm that's threatening to sink an industry already struggling to stay afloat. Since 2006, American newspapers have lost 70% of their advertising revenue.

"Looking back at 9/11 and The Great Recession, I think this is worse," said O'Connor. "I don't think any of us could have predicted this."

The Herald's parent company, Sound Publishing, also produces 43 small-town papers across Washington and Alaska.

Revenue is down up to 50% in many of those.

Coronavirus is creating a strained relationship between newspapers and their readers who have come to depend on each other.

"We cannot do this work without the support of our readers and the community we serve," said O'Connor.

Additional cuts are not planned at the Herald, but those decisions are being made "day to day," according to the publisher.

The newsman remains optimistic, however, that the Herald's halls will be full once again. Still, he makes a personal plea to the public to keep local journalism alive.

"This is the time when we need you the most in terms of your support in the form of subscriptions or donations to fund the critical journalism that we're doing to report on your communities."

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