Tribune Publishing is laying off nearly 200 workers at its Freedom Center plant beginning April 22, about two months ahead of the newspaper company’s planned relocation of printing operations to Schaumburg.
The layoffs, reported to the state last week, reflect the outsourcing of a weekly pre-printed advertising package that has long been assembled at Freedom Center, but exceeds the capacity of the new printing facility, the company said Tuesday.
Last year, Bally’s agreed to pay Tribune Publishing, owners of the Chicago Tribune and other newspapers, $150 million to vacate the Freedom Center by July 5, 2024, to begin building its permanent $1.7 billion Chicago casino.
Tribune Publishing is moving its printing operations to the Daily Herald plant in Schaumburg, which it purchased in May 2023 for an undisclosed price.
Most of the 198 employees who received layoff notices from Tribune Publishing assemble about 3 million pre-printed Vericast advertising packages, which are either inserted in the Chicago Tribune newspaper or mailed and delivered to area households each Wednesday.
The assembly work will be moved to a Vericast facility in Milwaukee ahead of the Freedom Center exit, the company said.
Laid off employees are being encouraged to apply for open positions at the Schaumburg facility, Tribune Publishing said. In a memo to the displaced workers, the company said there are currently 51 open positions at the plant, with a Friday deadline for submitting applications.
The Illinois Worker Adjustment and Retraining Notification Act requires businesses with 75 or more employees to provide the state with 60 days advance notice of pending plant closures or mass layoffs.
Built in 1981, the Freedom Center prints the Chicago Tribune, Wall Street Journal, New York Times, Chicago Sun-Times and other newspapers. It has also housed the Chicago Tribune newsroom since 2021.
Tribune will be trading in its printing plant for a newer but smaller facility. Paddock Publications opened the $50 million printing plant on 21 acres by the Elgin-O’Hare Expressway in 2003 to churn out its flagship Daily Herald, the state’s third largest newspaper. As part of the Schaumburg plant acquisition, Tribune will begin printing the Daily Herald under contract, sources said.
Rhode Island-based Bally’s won a heated competition to build the Chicago casino at the 30-acre Freedom Center site in River West. It received final planning and zoning approval from the city in December 2022 for an entertainment complex that included an exhibition hall, 500-room hotel, a 3,000-seat theater, 10 restaurants and 4,000 gaming positions.
Last month, Bally’s revealed that it would have to relocate the 500-room hotel tower to avoid damaging city water pipes near the Chicago River.
The permanent casino is expected to break ground this year, with plans to open it in 2026. Bally’s launched its temporary casino at Medinah Temple in September.
rchannick@chicagotribune.com
