9 Staffers Fired At Kiro In Further Cost-Cutting

Troubles continue at KIRO, Inc.

The station announced yesterday that 18 people are being laid off in an effort to reduce operating expenses. Seven of those are in the combined KIRO News Network, consisting of KIRO Newsradio and KIRO-TV News. But only one on-air personality, radio reporter Jackie O'Ryan, is affected, according to Nick Latham, director of corporate administration.

O'Ryan's responsibilities have included KIRO radio's "Generation Rap" ongoing feature about young people's views on various issues.

In a prepared statement, Jim Johnson, senior vice president of administration and finance, said the staff cuts were due to "dynamic change" in the broadcast industry.

`This decision is intended to strengthen our company and be part of a business strategy that will enable us to compete and make significant progress in the future," the statement said.

KIRO-TV's troubled "out-of-the-box" news format, which has resulted in disastrously low ratings since it debuted in February, is partially to blame for the staff bloodbath, according to former and current KIRO employees, who asked not to be named. Low ratings for TV news have substantially cut into revenues, they say.

Won't admit wrong

"People in accounting, advertising salespeople, secretaries are losing their jobs because of the stupid `out-of-the-box' news and they didn't have anything to do with it," said one employee. "And management still won't admit they were wrong."

The changeover to "out of the box" cost a reported $3 million, half of it for construction of the elaborate new set and at least $1 million for promotion.

However, Johnson's statement emphasized that the turmoil in the news department was not the main reason for the layoffs.

"While TV News ratings have been disappointing," it said, "this is not the primary reason for the reduction in staff."

KIRO Inc. has about 400 employees, Latham said.

Even while many employees are being given their walking papers, KIRO is preparing to bring on board a powerful new "editorial director," who reportedly will be groomed to become chief executive officer, a post held by Ken Hatch, who is also president of KIRO, Inc.

News anchor and interim news director Gary Justice has confirmed that Gordon G. Conger, a corporate attorney and partner at the Seattle law firm of Preston Thorgrimson Shidler Gates & Ellis, will leave the firm and join KIRO Aug. 1. He has been KIRO's corporate attorney. He will be the voice of KIRO management on the news, delivering on-air editorials. Until recently, Hatch has been delivering the editorials.

A top former KIRO employee said Conger is being groomed to take over control of the company from Hatch.

The source said Conger is being brought in to restore the conservative corporate image KIRO once had.

KIRO is owned by a financial arm of the Mormon Church.

Conger did not return several calls to his law office.

Format needs retooling

Despite the damage "out-of-the-box" news has done to the station, KIRO management, including Justice, continues to support it, although Justice admits it needs retooling. He said the entire news staff is involved in a process of re-evaluating and restructuring news programming, but that aspects of the concept, including the busy set, will be retained.

The format has already brought about the firing of several top news executives. Andy Ludlum, the senior vice president of news operations and one of those who devised the format, was fired Monday. Earlier this month, news director Gail Neubert and executive producer for TV news Carrie Krueger were let go.

Susan Hutchison, the popular KIRO news anchor, resigned from the station - her last day on the air was Tuesday - and although she didn't blame the new format she did say, diplomatically, "it needs work."

The statement issued yesterday by KIRO on the staff layoffs concluded, "This is a difficult time for all of us within the company. In spite of this, we remain a healthy progressive company with many areas of great success."