Inquirer Cuts Jobs After Tablet Launch

PHILADELPHIA - In a true sign of the times, the owners of the Philadelphia Inquirer and Daily News pushed their new Android tablet on Tuesday, and then confirmed layoffs at the newspapers.

Philadelphia Media Network pushed its new deeply discounted Android tablet and apps in various media outlets, including Fox 29, on Tuesday morning.

Just hours later, Bob Hall, chief operating officer of the new company, said 2011 advertising revenue fell more than 10 percent through July. That's twice the projected drop for the first seven months for the year.

The local Newspaper Guild says it was told 20 job cuts would include three photographers, along with library, computer, advertising and graphics jobs.

Creditors bought the Philadelphia Inquirer, Philadelphia Daily News and Philly.com at a bankruptcy auction last year.

The previous ownership group led by Brian Tierney bought the media company in 2006 for $562 million and had $390 million in debt when it filed for bankruptcy in 2009.

The current owners bought the papers for $135 million at auction after a prolonged, bitter battle with the Tierney group. The newspapers’ debt was mostly wiped out in the bankruptcy proceedings and the company’s unions made concessions to make the deal happen.

On Tuesday, Publisher Greg Osberg said the Android pilot project will provide about 5,000 tablets running Google's Android operating system for as low as $99 to customers who buy a two-year digital subscription to The Philadelphia Inquirer or Philadelphia Daily News.

The discount tablets will be offered first-come, first-served to those who buy the company's four apps: two that offer replicas of the papers' print editions, one for philly.com and one that features a version of the Inquirer designed for tablets.