The crisis engulfing Pearson Plc deepened Wednesday after the London-based education company cut its profit forecast and predicted years of gloom in the U.S. market. The company has operations in Indianapolis.
The Indianapolis NewsGuild, which represents newsroom and custodial employees at The Star, said Gannett management is threatening to eliminate five journalists if the guild does not go along with the company’s recent decision to outsource The Star’s copy editors.
The giant media firm's target was elusive from the beginning. It revealed in the spring that it was offering $388 million for the Chicago company, which it said refused to partake in "constructive discussions."
The announcement comes on the eve of the latest deadline that CEO Jeff Smulyan set for shareholders to accept his offer to buy back the company's stock and one day after Emmis said it would sell four Terre Haute radio stations.
The Indianapolis workforce for publisher Pearson has decreased from 850 to 180 full-time workers over the last 18 years, but a company executive told IBJ this week the firm is much more likely to grow here than shrink further.