DallasNews announces dividend suspension, staff cuts

DallasNews announced a plan to relocate and optimize its print operations currently located in Plano, Texas. The Company will streamline its printing operations into a smaller, leased facility in Carrollton, Texas, and make capital investments in more efficient technology. This transition will allow The News to keep its operations in North Texas and continue to produce a seven-day print edition for the foreseeable future. The new facility is expected to be operational in early 2025, and until then, all print operations will remain in the current facility. This transition of the Company’s print operations to a smaller facility is a pivotal element of its Return to Growth Plan, which started in 2021. Once the transition is completed, the Company expects to benefit from annual expense savings of approximately $5.0 million. This strategic decision is an essential step in the Company’s path toward becoming a sustainably profitable enterprise. The new facility and operations are expected to require about 60% fewer staff, equivalent to about 85 fewer employees, compared to the current print operations. This transition will trigger notification requirements under the Worker Adjustment and Retraining Notification Act. These notifications will be provided to all impacted employees and the appropriate local and state agencies. Katy Murray, president of DallasNews Corporation, stated: Based on the required capital investments to support the transition of the print operations, the Board of Directors of DallasNews Corporation has decided to suspend the declaration and payment of dividends until further notice.”