The Pittsburgh news outlet is citing financial problems as the reason for its closure.
On Wednesday, the owner of Pittsburgh Post-Gazette announced that it will cease publication of the newspaper on May 3. Owner Block Communications Inc. made the announcement just hours after the U.S. Supreme Court declined to consider a stay on enforcement of a lower court ruling that the newspaper had called onerous.
Block Communications is a privately held media holding company based in Toledo, Ohio.
The Pittsburgh-Post Gazette has worked through extensive legal battles with its unions. It cites the reason for closure as financial struggles from the legal action, coupled with the overall decline of the newspaper industry.
In November, the Third Circuit Court of Appeals ruled against the paper in its fight with a union representing newsroom employees. The ruling ordered the newspaper to restore the terms of a labor experiment that expired in 2017, including health care coverage.
A company appeal to the Supreme Court resulted in a temporary stay in the case, but then Wednesday’s ruling was issued.
Over the past 20 years, according to the company, Block Communications Inc. has lost more than $350 million in cash operating the Post-Gazette.
The company said the decline in popularity of local journalism makes “continued cash losses at this scale no longer sustainable.”
“Since 2007, the Post-Gazette has operated at a significant loss, supported by hundreds of millions of dollars of the Block family’s continued investment to keep the Post-Gazette open. Despite those efforts, the realities facing local journalism have brought us to the sad moment,” said Jodi Miehls, Block Communications president and chief operating officer in a video to employees on Wednesday.
The closure will impact about 180 employees at the Post-Gazette. Miehls said in the video that separation packages will be negotiated for union-represented employees, with severance packages being offered to non-union employees who choose to stay through the final edition and closure of the paper.
The reaction to news of the closure rippled across Pennsylvania.
Newspaper Guild of Pittsburgh President Andrew Goldstein said the decision to close the newspaper would harm the city and its residents.
“Instead of simply following the law, the owners chose to punish local journalists and the city of Pittsburgh. Post-Gazette journalists have done award winning work for decades and we’re going to pursue all options to make sure that Pittsburgh continues to have the caliber of journalism it deserves,” he said.
A spokesperson for Governor Shapiro said, “Local news is a critical part of our democracy. For nearly 250 years, journalists and staff [at the PG] have been asking questions, holding leaders accountable, and keeping Pennsylvanians informed about what’s going on in their community. This is a sad day for Western Pennsylvania and Pittsburgh.”
