Localization Key to Corporate Cut Backs

By Lizzie Newland
June 14, 2005 01:53 PM

National job cut announcements generate obvious impact and newsworthiness in the business section. But localization can make the issue hit home.

 

Such was the case last week, when General Motors (GM) announced plans to shed 25,000 jobs and close as many as four plants by 2008. Although no specific locations were mentioned as candidates for the chopping block, journalists can find ways to convey the impact of the story to local readers.

 

"There was a lot of information in the [GM] report," says Katie Merx of The Detroit Free Press, "so we broke it up." A sidebar allowed Free Press reporters to provide more detailed coverage of this complex event.

 

Merx's companion piece showed employees what to expect if GM changed its health care policy. Since many of the paper's readers are GM employees, retirees or family members, this information is of interest to a large number of readers.  

 

"We were looking at how this would affect workers, the survival of the company and the survival of benefits," Merx says.

 

Health care is important to the story because it is one of the major burdens that GM must face to get out of the red. Other important issues for reporters to consider are union cooperation and shareholder reaction.

 

In order to figure out the implications of the announcement, Merx contacted analysts, union representatives, and GM officials. Another important source was local workers and retirees whom Merx had cultivated relationships with over time. These interviews put a human voice in the story.

 

Ted Evanoff of The Indianapolis Star handled the announcement differently, focusing instead on broad corporate strategy.

 

"It wasn't the time for a local story…it's just a matter of taking a national lead and melding it into an Indiana angle," he said.

 

Evanoff got his angle by talking to people—a lot of people. He spent time with analysts and people in the auto parts industry to obtain any information he could to understand the vague announcement. Evanoff emphasizes the importance of asking the right questions, especially in a situation with few details.

 

What he learned allowed him to rank the level of risk for area GM plants. An accompanying traffic light graphic rating four Indiana plants' probability of job cuts or plant closures with a green, yellow or red designation. This allowed readers to get a quick visual overview of the potential impact on their lives.

 

Keep in mind that major corporate announcements trickle down to real people, who like comprise a majority of your readership. Communicating to them will help your story have a greater impact.

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Copyright © 2008 Donald W. Reynolds National Center for Business Journalism