Denver, Colorado-based Digital First Media, a subsidiary of New York-based hedge fund Alden Global Capital, and owner of the Denver Post and nearly 100 other newspapers nationwide, has announced that it is laying off 107 employees at its Colorado Springs, Colorado call center and is outsourcing the work to BPO (Business Process Outsourcing) services provider New York-based GenPact. Retreating to core competencies in times of financial difficulty or reorganization efforts makes perfect sense, especially when an outsourcer can provide lower costs due to their own economies of scale and specialized functions.
Alden has a reputation for its ruthless cost cutting and willingness to sacrifice both journalists and back office support staff to reduce debt and meet financial objectives. While some, mostly impacted employees cite unwarranted behavior, others compare Alden to a surgeon cutting out malignant tissue to save the body. Either way, it is the employees that suffer in the long run.
It can happen to anyone, anytime, anywhere ... are you wondering, Am I Next?